Correlation Between Bactiguard Holding and Biotage AB
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By analyzing existing cross correlation between Bactiguard Holding AB and Biotage AB, you can compare the effects of market volatilities on Bactiguard Holding and Biotage AB 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 Bactiguard Holding with a short position of Biotage AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bactiguard Holding and Biotage AB.
Diversification Opportunities for Bactiguard Holding and Biotage AB
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bactiguard and Biotage is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bactiguard Holding AB and Biotage AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotage AB and Bactiguard Holding 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 Bactiguard Holding AB are associated (or correlated) with Biotage AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotage AB has no effect on the direction of Bactiguard Holding i.e., Bactiguard Holding and Biotage AB go up and down completely randomly.
Pair Corralation between Bactiguard Holding and Biotage AB
Assuming the 90 days trading horizon Bactiguard Holding AB is expected to under-perform the Biotage AB. In addition to that, Bactiguard Holding is 1.35 times more volatile than Biotage AB. It trades about -0.03 of its total potential returns per unit of risk. Biotage AB is currently generating about 0.02 per unit of volatility. If you would invest 13,339 in Biotage AB on October 24, 2024 and sell it today you would earn a total of 351.00 from holding Biotage AB or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bactiguard Holding AB vs. Biotage AB
Performance |
| Timeline |
| Bactiguard Holding |
| Biotage AB |
Bactiguard Holding and Biotage AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bactiguard Holding and Biotage AB
The main advantage of trading using opposite Bactiguard Holding and Biotage AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bactiguard Holding position performs unexpectedly, Biotage AB 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 Biotage AB will offset losses from the drop in Biotage AB's long position.| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap AB |
| Biotage AB vs. CellaVision AB | Biotage AB vs. Vitrolife AB | Biotage AB vs. Sectra AB | Biotage AB vs. BioGaia 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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