Correlation Between Biocartis Group and Exmar NV
Can any of the company-specific risk be diversified away by investing in both Biocartis Group and Exmar 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 Exmar 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 Exmar NV, you can compare the effects of market volatilities on Biocartis Group and Exmar 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 Exmar NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocartis Group and Exmar NV.
Diversification Opportunities for Biocartis Group and Exmar NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biocartis and Exmar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biocartis Group NV and Exmar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exmar 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 Exmar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmar NV has no effect on the direction of Biocartis Group i.e., Biocartis Group and Exmar NV go up and down completely randomly.
Pair Corralation between Biocartis Group and Exmar NV
If you would invest 763.00 in Exmar NV on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Exmar NV or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Biocartis Group NV vs. Exmar NV
Performance |
| Timeline |
| Biocartis Group NV |
| Exmar NV |
Biocartis Group and Exmar NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocartis Group and Exmar NV
The main advantage of trading using opposite Biocartis Group and Exmar NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocartis Group position performs unexpectedly, Exmar 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 Exmar NV will offset losses from the drop in Exmar NV's long position.The idea behind Biocartis Group NV and Exmar 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.| Exmar NV vs. EVS Broadcast Equipment | Exmar NV vs. NV Bekaert SA | Exmar NV vs. Tessenderlo | Exmar NV vs. Melexis NV |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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