Correlation Between BB Biotech and AXA SA
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By analyzing existing cross correlation between BB Biotech AG and AXA SA, you can compare the effects of market volatilities on BB Biotech and AXA SA 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 BB Biotech with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Biotech and AXA SA.
Diversification Opportunities for BB Biotech and AXA SA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBZA and AXA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BB Biotech AG and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and BB Biotech 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 BB Biotech AG are associated (or correlated) with AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of BB Biotech i.e., BB Biotech and AXA SA go up and down completely randomly.
Pair Corralation between BB Biotech and AXA SA
Assuming the 90 days trading horizon BB Biotech AG is expected to generate 1.13 times more return on investment than AXA SA. However, BB Biotech is 1.13 times more volatile than AXA SA. It trades about 0.09 of its potential returns per unit of risk. AXA SA is currently generating about -0.15 per unit of risk. If you would invest 3,880 in BB Biotech AG on August 29, 2024 and sell it today you would earn a total of 125.00 from holding BB Biotech AG or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BB Biotech AG vs. AXA SA
Performance |
| Timeline |
| BB Biotech AG |
| AXA SA |
BB Biotech and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BB Biotech and AXA SA
The main advantage of trading using opposite BB Biotech and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BB Biotech position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.| BB Biotech vs. Aegean Airlines SA | BB Biotech vs. JAPAN AIRLINES | BB Biotech vs. CVW CLEANTECH INC | BB Biotech vs. SOUTHWEST AIRLINES |
| AXA SA vs. Equitable Holdings | AXA SA vs. NN Group NV | AXA SA vs. Superior Plus Corp | AXA SA vs. NMI Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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