Correlation Between Biogen and El Puerto
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By analyzing existing cross correlation between Biogen Inc and El Puerto de, you can compare the effects of market volatilities on Biogen and El Puerto 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 Biogen with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biogen and El Puerto.
Diversification Opportunities for Biogen and El Puerto
Very poor diversification
The 3 months correlation between Biogen and LIVEPOL1 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Biogen Inc and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Biogen 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 Biogen Inc are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Biogen i.e., Biogen and El Puerto go up and down completely randomly.
Pair Corralation between Biogen and El Puerto
Assuming the 90 days trading horizon Biogen Inc is expected to under-perform the El Puerto. In addition to that, Biogen is 8.72 times more volatile than El Puerto de. It trades about -0.19 of its total potential returns per unit of risk. El Puerto de is currently generating about -0.22 per unit of volatility. If you would invest 10,600 in El Puerto de on October 20, 2024 and sell it today you would lose (80.00) from holding El Puerto de or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Biogen Inc vs. El Puerto de
Performance |
| Timeline |
| Biogen Inc |
| El Puerto de |
Biogen and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biogen and El Puerto
The main advantage of trading using opposite Biogen and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biogen position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| Biogen vs. Eli Lilly and | Biogen vs. Roche Holding AG | Biogen vs. Bristol Myers Squibb | Biogen vs. Amgen Inc |
| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. Companhia Brasileira de | El Puerto vs. Grupo Famsa SAB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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