Correlation Between BICO Group and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both BICO Group and Clinical Laserthermia 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 BICO Group and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BICO Group AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on BICO Group and Clinical Laserthermia 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 BICO Group with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BICO Group and Clinical Laserthermia.
Diversification Opportunities for BICO Group and Clinical Laserthermia
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BICO and Clinical is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BICO Group AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and BICO 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 BICO Group AB are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of BICO Group i.e., BICO Group and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between BICO Group and Clinical Laserthermia
Assuming the 90 days trading horizon BICO Group AB is expected to generate 1.55 times more return on investment than Clinical Laserthermia. However, BICO Group is 1.55 times more volatile than Clinical Laserthermia Systems. It trades about 0.12 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.12 per unit of risk. If you would invest 3,288 in BICO Group AB on December 1, 2024 and sell it today you would earn a total of 376.00 from holding BICO Group AB or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BICO Group AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| BICO Group AB |
| Clinical Laserthermia |
BICO Group and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BICO Group and Clinical Laserthermia
The main advantage of trading using opposite BICO Group and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BICO Group position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| BICO Group vs. Sinch AB | BICO Group vs. Hexatronic Group AB | BICO Group vs. Surgical Science Sweden | BICO Group vs. Embracer Group AB |
| Clinical Laserthermia vs. Cantargia AB | Clinical Laserthermia vs. Episurf Medical AB | Clinical Laserthermia vs. Karolinska Development AB | Clinical Laserthermia vs. Acarix AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |