Correlation Between Bayer AG and Zivo Bioscience
Can any of the company-specific risk be diversified away by investing in both Bayer AG and Zivo Bioscience 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 Bayer AG and Zivo Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayer AG PK and Zivo Bioscience, you can compare the effects of market volatilities on Bayer AG and Zivo Bioscience 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 Bayer AG with a short position of Zivo Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayer AG and Zivo Bioscience.
Diversification Opportunities for Bayer AG and Zivo Bioscience
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayer and Zivo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bayer AG PK and Zivo Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zivo Bioscience and Bayer AG 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 Bayer AG PK are associated (or correlated) with Zivo Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zivo Bioscience has no effect on the direction of Bayer AG i.e., Bayer AG and Zivo Bioscience go up and down completely randomly.
Pair Corralation between Bayer AG and Zivo Bioscience
Assuming the 90 days horizon Bayer AG PK is expected to generate 0.36 times more return on investment than Zivo Bioscience. However, Bayer AG PK is 2.74 times less risky than Zivo Bioscience. It trades about 0.23 of its potential returns per unit of risk. Zivo Bioscience is currently generating about -0.03 per unit of risk. If you would invest 1,398 in Bayer AG PK on August 24, 2024 and sell it today you would earn a total of 288.00 from holding Bayer AG PK or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.93% |
| Values | Daily Returns |
Bayer AG PK vs. Zivo Bioscience
Performance |
| Timeline |
| Bayer AG PK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zivo Bioscience |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bayer AG and Zivo Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayer AG and Zivo Bioscience
The main advantage of trading using opposite Bayer AG and Zivo Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayer AG position performs unexpectedly, Zivo Bioscience 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 Zivo Bioscience will offset losses from the drop in Zivo Bioscience's long position.| Bayer AG vs. Novartis AG ADR | Bayer AG vs. Sanofi ADR | Bayer AG vs. AstraZeneca PLC ADR | Bayer AG vs. GlaxoSmithKline PLC ADR |
| Zivo Bioscience vs. RenovoRx | Zivo Bioscience vs. Pasithea Therapeutics Corp | Zivo Bioscience vs. Quoin Pharmaceuticals Ltd | Zivo Bioscience vs. Erasca Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |