Correlation Between Biofrontera Warrants and TC BioPharm
Can any of the company-specific risk be diversified away by investing in both Biofrontera Warrants and TC BioPharm 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 TC BioPharm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera Warrants and TC BioPharm plc, you can compare the effects of market volatilities on Biofrontera Warrants and TC BioPharm 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 TC BioPharm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera Warrants and TC BioPharm.
Diversification Opportunities for Biofrontera Warrants and TC BioPharm
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biofrontera and TCBPW is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera Warrants and TC BioPharm plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC BioPharm plc 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 TC BioPharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC BioPharm plc has no effect on the direction of Biofrontera Warrants i.e., Biofrontera Warrants and TC BioPharm go up and down completely randomly.
Pair Corralation between Biofrontera Warrants and TC BioPharm
Assuming the 90 days horizon Biofrontera Warrants is expected to generate 5.97 times more return on investment than TC BioPharm. However, Biofrontera Warrants is 5.97 times more volatile than TC BioPharm plc. It trades about 0.21 of its potential returns per unit of risk. TC BioPharm plc is currently generating about 0.09 per unit of risk. If you would invest 0.00 in Biofrontera Warrants on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Biofrontera Warrants or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.56% |
| Values | Daily Returns |
Biofrontera Warrants vs. TC BioPharm plc
Performance |
| Timeline |
| Biofrontera Warrants |
| TC BioPharm plc |
Biofrontera Warrants and TC BioPharm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofrontera Warrants and TC BioPharm
The main advantage of trading using opposite Biofrontera Warrants and TC BioPharm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera Warrants position performs unexpectedly, TC BioPharm 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 TC BioPharm will offset losses from the drop in TC BioPharm's long position.| Biofrontera Warrants vs. Biofrontera | Biofrontera Warrants vs. Pasithea Therapeutics Corp | Biofrontera Warrants vs. Inspira Technologies Oxy | Biofrontera Warrants vs. Bluejay Diagnostics |
| TC BioPharm vs. Protagenic Therapeutics | TC BioPharm vs. bioAffinity Technologies Warrant | TC BioPharm vs. American Rebel Holdings | TC BioPharm vs. Alvotech Warrant |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |