Correlation Between Biomerieux and Spineguard
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Spineguard 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 Spineguard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Spineguard, you can compare the effects of market volatilities on Biomerieux and Spineguard 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 Spineguard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Spineguard.
Diversification Opportunities for Biomerieux and Spineguard
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biomerieux and Spineguard is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Spineguard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spineguard 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 Spineguard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spineguard has no effect on the direction of Biomerieux i.e., Biomerieux and Spineguard go up and down completely randomly.
Pair Corralation between Biomerieux and Spineguard
Assuming the 90 days trading horizon Biomerieux SA is expected to under-perform the Spineguard. But the stock apears to be less risky and, when comparing its historical volatility, Biomerieux SA is 3.98 times less risky than Spineguard. The stock trades about -0.21 of its potential returns per unit of risk. The Spineguard is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Spineguard on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Spineguard or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerieux SA vs. Spineguard
Performance |
| Timeline |
| Biomerieux SA |
| Spineguard |
Biomerieux and Spineguard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Spineguard
The main advantage of trading using opposite Biomerieux and Spineguard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Spineguard 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 Spineguard will offset losses from the drop in Spineguard's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred SA |
| Spineguard vs. Biophytis SA | Spineguard vs. Spineway | Spineguard vs. Novacyt | Spineguard vs. Quantum Genomics 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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