Correlation Between Biofrontera Warrants and Histogen
Can any of the company-specific risk be diversified away by investing in both Biofrontera Warrants and Histogen 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 Biofrontera Warrants and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera Warrants and Histogen, you can compare the effects of market volatilities on Biofrontera Warrants and Histogen 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 Biofrontera Warrants with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera Warrants and Histogen.
Diversification Opportunities for Biofrontera Warrants and Histogen
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biofrontera and Histogen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera Warrants and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Biofrontera Warrants 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 Biofrontera Warrants are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Biofrontera Warrants i.e., Biofrontera Warrants and Histogen go up and down completely randomly.
Pair Corralation between Biofrontera Warrants and Histogen
Assuming the 90 days horizon Biofrontera Warrants is expected to generate 1.57 times more return on investment than Histogen. However, Biofrontera Warrants is 1.57 times more volatile than Histogen. It trades about 0.21 of its potential returns per unit of risk. Histogen is currently generating about -0.25 per unit of risk. If you would invest 8.00 in Biofrontera Warrants on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Biofrontera Warrants or generate 62.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Biofrontera Warrants vs. Histogen
Performance |
| Timeline |
| Biofrontera Warrants |
| Histogen |
Biofrontera Warrants and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofrontera Warrants and Histogen
The main advantage of trading using opposite Biofrontera Warrants and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera Warrants position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Biofrontera Warrants vs. Connect Biopharma Holdings | Biofrontera Warrants vs. Acumen Pharmaceuticals | Biofrontera Warrants vs. Nuvation Bio | Biofrontera Warrants vs. Eledon Pharmaceuticals |
| Histogen vs. Virax Biolabs Group | Histogen vs. Altamira Therapeutics | Histogen vs. Aileron Therapeutics | Histogen vs. Artelo Biosciences |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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