Correlation Between BIO UV and UV Germi
Can any of the company-specific risk be diversified away by investing in both BIO UV and UV Germi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BIO UV and UV Germi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIO UV Group and UV Germi SA, you can compare the effects of market volatilities on BIO UV and UV Germi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BIO UV with a short position of UV Germi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO UV and UV Germi.
Diversification Opportunities for BIO UV and UV Germi
Poor diversification
The 3 months correlation between BIO and ALUVI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BIO UV Group and UV Germi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UV Germi SA and BIO UV is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BIO UV Group are associated (or correlated) with UV Germi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UV Germi SA has no effect on the direction of BIO UV i.e., BIO UV and UV Germi go up and down completely randomly.
Pair Corralation between BIO UV and UV Germi
Assuming the 90 days trading horizon BIO UV Group is expected to under-perform the UV Germi. But the stock apears to be less risky and, when comparing its historical volatility, BIO UV Group is 1.35 times less risky than UV Germi. The stock trades about -0.09 of its potential returns per unit of risk. The UV Germi SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 440.00 in UV Germi SA on September 4, 2024 and sell it today you would lose (188.00) from holding UV Germi SA or give up 42.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIO UV Group vs. UV Germi SA
Performance |
| Timeline |
| BIO UV Group |
| UV Germi SA |
BIO UV and UV Germi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO UV and UV Germi
The main advantage of trading using opposite BIO UV and UV Germi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO UV position performs unexpectedly, UV Germi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UV Germi will offset losses from the drop in UV Germi's long position.| BIO UV vs. Veolia Environnement VE | BIO UV vs. Derichebourg | BIO UV vs. Groupe Pizzorno Environnement | BIO UV vs. Ecoslops SA |
| UV Germi vs. Novacyt | UV Germi vs. Intrasense | UV Germi vs. BIO UV Group | UV Germi vs. Eurobio Scientific SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |