Correlation Between Washington Mutual and Bactiguard Holding
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By analyzing existing cross correlation between Washington Mutual Investors and Bactiguard Holding AB, you can compare the effects of market volatilities on Washington Mutual and Bactiguard Holding 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 Washington Mutual with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Bactiguard Holding.
Diversification Opportunities for Washington Mutual and Bactiguard Holding
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Washington and Bactiguard is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of Washington Mutual i.e., Washington Mutual and Bactiguard Holding go up and down completely randomly.
Pair Corralation between Washington Mutual and Bactiguard Holding
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 0.2 times more return on investment than Bactiguard Holding. However, Washington Mutual Investors is 5.0 times less risky than Bactiguard Holding. It trades about 0.21 of its potential returns per unit of risk. Bactiguard Holding AB is currently generating about -0.11 per unit of risk. If you would invest 6,205 in Washington Mutual Investors on October 24, 2024 and sell it today you would earn a total of 173.00 from holding Washington Mutual Investors or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Washington Mutual Investors vs. Bactiguard Holding AB
Performance |
| Timeline |
| Washington Mutual |
| Bactiguard Holding |
Washington Mutual and Bactiguard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Bactiguard Holding
The main advantage of trading using opposite Washington Mutual and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.| Washington Mutual vs. Alphacentric Symmetry Strategy | Washington Mutual vs. Barings Emerging Markets | Washington Mutual vs. Western Assets Emerging | Washington Mutual vs. Catalystmillburn Hedge Strategy |
| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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