Correlation Between BB Biotech and JAPAN AIRLINES
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By analyzing existing cross correlation between BB Biotech AG and JAPAN AIRLINES, you can compare the effects of market volatilities on BB Biotech and JAPAN AIRLINES 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 JAPAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Biotech and JAPAN AIRLINES.
Diversification Opportunities for BB Biotech and JAPAN AIRLINES
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between BBZA and JAPAN is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BB Biotech AG and JAPAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN AIRLINES 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 JAPAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN AIRLINES has no effect on the direction of BB Biotech i.e., BB Biotech and JAPAN AIRLINES go up and down completely randomly.
Pair Corralation between BB Biotech and JAPAN AIRLINES
Assuming the 90 days trading horizon BB Biotech AG is expected to under-perform the JAPAN AIRLINES. In addition to that, BB Biotech is 1.1 times more volatile than JAPAN AIRLINES. It trades about -0.03 of its total potential returns per unit of risk. JAPAN AIRLINES is currently generating about -0.02 per unit of volatility. If you would invest 1,794 in JAPAN AIRLINES on September 3, 2024 and sell it today you would lose (234.00) from holding JAPAN AIRLINES or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BB Biotech AG vs. JAPAN AIRLINES
Performance |
| Timeline |
| BB Biotech AG |
| JAPAN AIRLINES |
BB Biotech and JAPAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BB Biotech and JAPAN AIRLINES
The main advantage of trading using opposite BB Biotech and JAPAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BB Biotech position performs unexpectedly, JAPAN AIRLINES 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 JAPAN AIRLINES will offset losses from the drop in JAPAN AIRLINES's long position.| BB Biotech vs. Tyson Foods | BB Biotech vs. AUSTEVOLL SEAFOOD | BB Biotech vs. HF FOODS GRP | BB Biotech vs. Cal Maine Foods |
| JAPAN AIRLINES vs. Park Hotels Resorts | JAPAN AIRLINES vs. Wyndham Hotels Resorts | JAPAN AIRLINES vs. ORMAT TECHNOLOGIES | JAPAN AIRLINES vs. RCM TECHNOLOGIES |
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 CEOs Directory module to screen CEOs from public companies around the world.
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