Correlation Between Biocartis Group and Barco NV
Can any of the company-specific risk be diversified away by investing in both Biocartis Group and Barco NV 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 Biocartis Group and Barco NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocartis Group NV and Barco NV, you can compare the effects of market volatilities on Biocartis Group and Barco NV 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 Biocartis Group with a short position of Barco NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocartis Group and Barco NV.
Diversification Opportunities for Biocartis Group and Barco NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biocartis and Barco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biocartis Group NV and Barco NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barco NV and Biocartis Group 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 Biocartis Group NV are associated (or correlated) with Barco NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barco NV has no effect on the direction of Biocartis Group i.e., Biocartis Group and Barco NV go up and down completely randomly.
Pair Corralation between Biocartis Group and Barco NV
Assuming the 90 days trading horizon Biocartis Group NV is expected to generate 0.77 times more return on investment than Barco NV. However, Biocartis Group NV is 1.3 times less risky than Barco NV. It trades about -0.09 of its potential returns per unit of risk. Barco NV is currently generating about -0.09 per unit of risk. If you would invest 58.00 in Biocartis Group NV on August 30, 2024 and sell it today you would lose (29.00) from holding Biocartis Group NV or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.5% |
| Values | Daily Returns |
Biocartis Group NV vs. Barco NV
Performance |
| Timeline |
| Biocartis Group NV |
| Barco NV |
Biocartis Group and Barco NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocartis Group and Barco NV
The main advantage of trading using opposite Biocartis Group and Barco NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocartis Group position performs unexpectedly, Barco NV 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 Barco NV will offset losses from the drop in Barco NV's long position.The idea behind Biocartis Group NV and Barco NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Barco NV vs. Kinepolis Group NV | Barco NV vs. ageas SANV | Barco NV vs. Ackermans Van Haaren | Barco NV vs. Solvay SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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