Correlation Between Biomerieux and Integragen
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Integragen 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 Biomerieux and Integragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Integragen, you can compare the effects of market volatilities on Biomerieux and Integragen 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 Biomerieux with a short position of Integragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Integragen.
Diversification Opportunities for Biomerieux and Integragen
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biomerieux and Integragen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Integragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integragen and Biomerieux 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 Biomerieux SA are associated (or correlated) with Integragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integragen has no effect on the direction of Biomerieux i.e., Biomerieux and Integragen go up and down completely randomly.
Pair Corralation between Biomerieux and Integragen
Assuming the 90 days trading horizon Biomerieux SA is expected to generate 0.35 times more return on investment than Integragen. However, Biomerieux SA is 2.87 times less risky than Integragen. It trades about -0.28 of its potential returns per unit of risk. Integragen is currently generating about -0.21 per unit of risk. If you would invest 10,650 in Biomerieux SA on August 28, 2024 and sell it today you would lose (845.00) from holding Biomerieux SA or give up 7.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerieux SA vs. Integragen
Performance |
| Timeline |
| Biomerieux SA |
| Integragen |
Biomerieux and Integragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Integragen
The main advantage of trading using opposite Biomerieux and Integragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Integragen 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 Integragen will offset losses from the drop in Integragen's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Teleperformance SE | Biomerieux vs. Dassault Systemes SE | Biomerieux vs. Worldline SA |
| Integragen vs. Biomerieux SA | Integragen vs. Eurofins Scientific SE | Integragen vs. Sartorius Stedim Biotech | Integragen vs. SEB SA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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