Correlation Between BioInvent International and Combigene
Can any of the company-specific risk be diversified away by investing in both BioInvent International and Combigene 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 BioInvent International and Combigene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioInvent International AB and Combigene AB, you can compare the effects of market volatilities on BioInvent International and Combigene 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 BioInvent International with a short position of Combigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Combigene.
Diversification Opportunities for BioInvent International and Combigene
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BioInvent and Combigene is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB and BioInvent International 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 BioInvent International AB are associated (or correlated) with Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of BioInvent International i.e., BioInvent International and Combigene go up and down completely randomly.
Pair Corralation between BioInvent International and Combigene
Assuming the 90 days trading horizon BioInvent International AB is expected to under-perform the Combigene. In addition to that, BioInvent International is 1.12 times more volatile than Combigene AB. It trades about -0.36 of its total potential returns per unit of risk. Combigene AB is currently generating about -0.06 per unit of volatility. If you would invest 258.00 in Combigene AB on October 24, 2024 and sell it today you would lose (12.00) from holding Combigene AB or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioInvent International AB vs. Combigene AB
Performance |
| Timeline |
| BioInvent International |
| Combigene AB |
BioInvent International and Combigene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Combigene
The main advantage of trading using opposite BioInvent International and Combigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International position performs unexpectedly, Combigene 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 Combigene will offset losses from the drop in Combigene's long position.| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides AB |
| Combigene vs. Kancera AB | Combigene vs. BioInvent International AB | Combigene vs. Oncopeptides AB | Combigene vs. Acarix AS |
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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