Correlation Between Alligator Bioscience and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Alligator Bioscience and Isofol Medical 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 Alligator Bioscience and Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alligator Bioscience AB and Isofol Medical AB, you can compare the effects of market volatilities on Alligator Bioscience and Isofol Medical 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 Alligator Bioscience with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alligator Bioscience and Isofol Medical.
Diversification Opportunities for Alligator Bioscience and Isofol Medical
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Alligator and Isofol is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Alligator Bioscience AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Alligator Bioscience 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 Alligator Bioscience AB are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Alligator Bioscience i.e., Alligator Bioscience and Isofol Medical go up and down completely randomly.
Pair Corralation between Alligator Bioscience and Isofol Medical
Assuming the 90 days trading horizon Alligator Bioscience AB is expected to generate 11.03 times more return on investment than Isofol Medical. However, Alligator Bioscience is 11.03 times more volatile than Isofol Medical AB. It trades about 0.1 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.08 per unit of risk. If you would invest 25.00 in Alligator Bioscience AB on November 3, 2024 and sell it today you would lose (20.96) from holding Alligator Bioscience AB or give up 83.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alligator Bioscience AB vs. Isofol Medical AB
Performance |
| Timeline |
| Alligator Bioscience |
| Isofol Medical AB |
Alligator Bioscience and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alligator Bioscience and Isofol Medical
The main advantage of trading using opposite Alligator Bioscience and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alligator Bioscience position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| Alligator Bioscience vs. BioArctic AB | Alligator Bioscience vs. Camurus AB | Alligator Bioscience vs. Xvivo Perfusion AB | Alligator Bioscience vs. Surgical Science Sweden |
| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical vs. Alligator Bioscience AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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