Correlation Between Imotrust and Biofarm Bucure
Can any of the company-specific risk be diversified away by investing in both Imotrust and Biofarm Bucure 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 Imotrust and Biofarm Bucure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imotrust SA and Biofarm Bucure, you can compare the effects of market volatilities on Imotrust and Biofarm Bucure 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 Imotrust with a short position of Biofarm Bucure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imotrust and Biofarm Bucure.
Diversification Opportunities for Imotrust and Biofarm Bucure
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Imotrust and Biofarm is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Imotrust SA and Biofarm Bucure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofarm Bucure and Imotrust 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 Imotrust SA are associated (or correlated) with Biofarm Bucure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofarm Bucure has no effect on the direction of Imotrust i.e., Imotrust and Biofarm Bucure go up and down completely randomly.
Pair Corralation between Imotrust and Biofarm Bucure
Assuming the 90 days trading horizon Imotrust SA is expected to generate 5.43 times more return on investment than Biofarm Bucure. However, Imotrust is 5.43 times more volatile than Biofarm Bucure. It trades about 0.02 of its potential returns per unit of risk. Biofarm Bucure is currently generating about -0.17 per unit of risk. If you would invest 12.00 in Imotrust SA on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Imotrust SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imotrust SA vs. Biofarm Bucure
Performance |
| Timeline |
| Imotrust SA |
| Biofarm Bucure |
Imotrust and Biofarm Bucure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imotrust and Biofarm Bucure
The main advantage of trading using opposite Imotrust and Biofarm Bucure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imotrust position performs unexpectedly, Biofarm Bucure 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 Biofarm Bucure will offset losses from the drop in Biofarm Bucure's long position.| Imotrust vs. AROBS TRANSILVANIA SOFTWARE | Imotrust vs. Digi Communications NV | Imotrust vs. IHUNT TECHNOLOGY IMPORT EXPORT | Imotrust vs. Infinity Capital Investments |
| Biofarm Bucure vs. Teraplast Bist | Biofarm Bucure vs. Electroarges S | Biofarm Bucure vs. Comvex SA | Biofarm Bucure vs. Feper 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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