Correlation Between Biomerieux and Theradiag
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Theradiag 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 Theradiag into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Theradiag SA, you can compare the effects of market volatilities on Biomerieux and Theradiag 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 Theradiag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Theradiag.
Diversification Opportunities for Biomerieux and Theradiag
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biomerieux and Theradiag is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Theradiag SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theradiag SA 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 Theradiag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theradiag SA has no effect on the direction of Biomerieux i.e., Biomerieux and Theradiag go up and down completely randomly.
Pair Corralation between Biomerieux and Theradiag
Assuming the 90 days trading horizon Biomerieux SA is expected to generate 0.37 times more return on investment than Theradiag. However, Biomerieux SA is 2.72 times less risky than Theradiag. It trades about 0.02 of its potential returns per unit of risk. Theradiag SA is currently generating about -0.03 per unit of risk. If you would invest 9,267 in Biomerieux SA on August 28, 2024 and sell it today you would earn a total of 538.00 from holding Biomerieux SA or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Biomerieux SA vs. Theradiag SA
Performance |
| Timeline |
| Biomerieux SA |
| Theradiag SA |
Biomerieux and Theradiag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Theradiag
The main advantage of trading using opposite Biomerieux and Theradiag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Theradiag 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 Theradiag will offset losses from the drop in Theradiag's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Teleperformance SE | Biomerieux vs. Dassault Systemes SE | Biomerieux vs. Worldline SA |
| Theradiag vs. Biomerieux SA | Theradiag vs. Eurofins Scientific SE | Theradiag vs. Sartorius Stedim Biotech | Theradiag 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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