Correlation Between Biomerieux and Eurofins Scientific
Can any of the company-specific risk be diversified away by investing in both Biomerieux and Eurofins Scientific 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 Eurofins Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and Eurofins Scientific SE, you can compare the effects of market volatilities on Biomerieux and Eurofins Scientific 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 Eurofins Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and Eurofins Scientific.
Diversification Opportunities for Biomerieux and Eurofins Scientific
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biomerieux and Eurofins is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and Eurofins Scientific SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurofins Scientific 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 Eurofins Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurofins Scientific has no effect on the direction of Biomerieux i.e., Biomerieux and Eurofins Scientific go up and down completely randomly.
Pair Corralation between Biomerieux and Eurofins Scientific
Assuming the 90 days trading horizon Biomerieux SA is expected to under-perform the Eurofins Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Biomerieux SA is 1.01 times less risky than Eurofins Scientific. The stock trades about -0.29 of its potential returns per unit of risk. The Eurofins Scientific SE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Eurofins Scientific SE on August 28, 2024 and sell it today you would earn a total of 41.00 from holding Eurofins Scientific SE or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerieux SA vs. Eurofins Scientific SE
Performance |
| Timeline |
| Biomerieux SA |
| Eurofins Scientific |
Biomerieux and Eurofins Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and Eurofins Scientific
The main advantage of trading using opposite Biomerieux and Eurofins Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, Eurofins Scientific 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 Eurofins Scientific will offset losses from the drop in Eurofins Scientific's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred SA |
| Eurofins Scientific vs. Sartorius Stedim Biotech | Eurofins Scientific vs. Teleperformance SE | Eurofins Scientific vs. Biomerieux SA | Eurofins Scientific vs. Dassault Systemes SE |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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