Correlation Between Biomerieux and Amplitude Surgical
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Amplitude Surgical 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 Amplitude Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Amplitude Surgical SAS, you can compare the effects of market volatilities on Biomerieux and Amplitude Surgical 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 Amplitude Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Amplitude Surgical.
Diversification Opportunities for Biomerieux and Amplitude Surgical
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biomerieux and Amplitude is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Amplitude Surgical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplitude Surgical SAS 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 Amplitude Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplitude Surgical SAS has no effect on the direction of Biomerieux i.e., Biomerieux and Amplitude Surgical go up and down completely randomly.
Pair Corralation between Biomerieux and Amplitude Surgical
Assuming the 90 days trading horizon Biomerieux is expected to generate 3.1 times less return on investment than Amplitude Surgical. But when comparing it to its historical volatility, Biomerieux SA is 1.78 times less risky than Amplitude Surgical. It trades about 0.03 of its potential returns per unit of risk. Amplitude Surgical SAS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Amplitude Surgical SAS on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Amplitude Surgical SAS or generate 11.64% 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. Amplitude Surgical SAS
Performance |
| Timeline |
| Biomerieux SA |
| Amplitude Surgical SAS |
Biomerieux and Amplitude Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Amplitude Surgical
The main advantage of trading using opposite Biomerieux and Amplitude Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Amplitude Surgical 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 Amplitude Surgical will offset losses from the drop in Amplitude Surgical's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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