Correlation Between BioInvent International and Stayble Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioInvent International and Stayble Therapeutics 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 Stayble Therapeutics 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 Stayble Therapeutics AB, you can compare the effects of market volatilities on BioInvent International and Stayble Therapeutics 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 Stayble Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioInvent International and Stayble Therapeutics.
Diversification Opportunities for BioInvent International and Stayble Therapeutics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioInvent and Stayble is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International AB and Stayble Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stayble Therapeutics 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 Stayble Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stayble Therapeutics has no effect on the direction of BioInvent International i.e., BioInvent International and Stayble Therapeutics go up and down completely randomly.
Pair Corralation between BioInvent International and Stayble Therapeutics
Assuming the 90 days trading horizon BioInvent International is expected to generate 4.04 times less return on investment than Stayble Therapeutics. But when comparing it to its historical volatility, BioInvent International AB is 1.86 times less risky than Stayble Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Stayble Therapeutics AB is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Stayble Therapeutics AB on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Stayble Therapeutics AB or generate 128.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
BioInvent International AB vs. Stayble Therapeutics AB
Performance |
| Timeline |
| BioInvent International |
| Stayble Therapeutics |
BioInvent International and Stayble Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioInvent International and Stayble Therapeutics
The main advantage of trading using opposite BioInvent International and Stayble Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International position performs unexpectedly, Stayble Therapeutics 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 Stayble Therapeutics will offset losses from the drop in Stayble Therapeutics' long position.| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides AB |
| Stayble Therapeutics vs. Hansa Biopharma AB | Stayble Therapeutics vs. Saniona AB | Stayble Therapeutics vs. Oncopeptides 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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