Correlation Between Biomerieux and OSE Pharma
Can any of the company-specific risk be diversified away by investing in both Biomerieux and OSE Pharma 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 OSE Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerieux SA and OSE Pharma SA, you can compare the effects of market volatilities on Biomerieux and OSE Pharma 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 OSE Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerieux and OSE Pharma.
Diversification Opportunities for Biomerieux and OSE Pharma
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biomerieux and OSE is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Biomerieux SA and OSE Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSE Pharma 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 OSE Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSE Pharma SA has no effect on the direction of Biomerieux i.e., Biomerieux and OSE Pharma go up and down completely randomly.
Pair Corralation between Biomerieux and OSE Pharma
Assuming the 90 days trading horizon Biomerieux is expected to generate 3.0 times less return on investment than OSE Pharma. But when comparing it to its historical volatility, Biomerieux SA is 3.82 times less risky than OSE Pharma. It trades about 0.04 of its potential returns per unit of risk. OSE Pharma SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 560.00 in OSE Pharma SA on November 19, 2024 and sell it today you would earn a total of 138.00 from holding OSE Pharma SA or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerieux SA vs. OSE Pharma SA
Performance |
| Timeline |
| Biomerieux SA |
| OSE Pharma SA |
Biomerieux and OSE Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerieux and OSE Pharma
The main advantage of trading using opposite Biomerieux and OSE Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerieux position performs unexpectedly, OSE Pharma 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 OSE Pharma will offset losses from the drop in OSE Pharma's long position.| Biomerieux vs. Sartorius Stedim Biotech | Biomerieux vs. Eurofins Scientific SE | Biomerieux vs. Ipsen SA | Biomerieux vs. Edenred SA |
| OSE Pharma vs. Innate Pharma | OSE Pharma vs. Quantum Genomics SA | OSE Pharma vs. Valneva SE | OSE Pharma vs. Poxel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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