Correlation Between Ambu AS and BioPorto
Can any of the company-specific risk be diversified away by investing in both Ambu AS and BioPorto 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 Ambu AS and BioPorto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambu AS and BioPorto, you can compare the effects of market volatilities on Ambu AS and BioPorto 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 Ambu AS with a short position of BioPorto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambu AS and BioPorto.
Diversification Opportunities for Ambu AS and BioPorto
Very good diversification
The 3 months correlation between Ambu and BioPorto is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ambu AS and BioPorto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioPorto and Ambu AS 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 Ambu AS are associated (or correlated) with BioPorto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioPorto has no effect on the direction of Ambu AS i.e., Ambu AS and BioPorto go up and down completely randomly.
Pair Corralation between Ambu AS and BioPorto
Assuming the 90 days trading horizon Ambu AS is expected to generate 0.74 times more return on investment than BioPorto. However, Ambu AS is 1.34 times less risky than BioPorto. It trades about 0.03 of its potential returns per unit of risk. BioPorto is currently generating about -0.02 per unit of risk. If you would invest 11,894 in Ambu AS on November 11, 2024 and sell it today you would earn a total of 1,466 from holding Ambu AS or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambu AS vs. BioPorto
Performance |
| Timeline |
| Ambu AS |
| BioPorto |
Ambu AS and BioPorto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambu AS and BioPorto
The main advantage of trading using opposite Ambu AS and BioPorto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambu AS position performs unexpectedly, BioPorto 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 BioPorto will offset losses from the drop in BioPorto's long position.| Ambu AS vs. Bavarian Nordic | Ambu AS vs. Genmab AS | Ambu AS vs. GN Store Nord | Ambu AS vs. DSV Panalpina AS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |