Correlation Between BioInvent International and Maha Energy
Can any of the company-specific risk be diversified away by investing in both BioInvent International and Maha Energy 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 Maha Energy 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 Maha Energy AB, you can compare the effects of market volatilities on BioInvent International and Maha Energy 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 Maha Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Maha Energy.
Diversification Opportunities for BioInvent International and Maha Energy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioInvent and Maha is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Maha Energy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maha Energy 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 Maha Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maha Energy AB has no effect on the direction of BioInvent International i.e., BioInvent International and Maha Energy go up and down completely randomly.
Pair Corralation between BioInvent International and Maha Energy
Assuming the 90 days trading horizon BioInvent International AB is expected to generate 1.07 times more return on investment than Maha Energy. However, BioInvent International is 1.07 times more volatile than Maha Energy AB. It trades about -0.04 of its potential returns per unit of risk. Maha Energy AB is currently generating about -0.44 per unit of risk. If you would invest 2,670 in BioInvent International AB on December 6, 2024 and sell it today you would lose (100.00) from holding BioInvent International AB or give up 3.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioInvent International AB vs. Maha Energy AB
Performance |
| Timeline |
| BioInvent International |
| Maha Energy AB |
BioInvent International and Maha Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Maha Energy
The main advantage of trading using opposite BioInvent International and Maha Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International position performs unexpectedly, Maha Energy 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 Maha Energy will offset losses from the drop in Maha Energy'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 |
| Maha Energy vs. GomSpace Group AB | Maha Energy vs. SaltX Technology Holding | Maha Energy vs. Ambu AS | Maha Energy vs. Fingerprint Cards AB |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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