Correlation Between Biofarm Bucure and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Biofarm Bucure and IHUNT TECHNOLOGY 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 Biofarm Bucure and IHUNT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofarm Bucure and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on Biofarm Bucure and IHUNT TECHNOLOGY 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 Biofarm Bucure with a short position of IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofarm Bucure and IHUNT TECHNOLOGY.
Diversification Opportunities for Biofarm Bucure and IHUNT TECHNOLOGY
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biofarm and IHUNT is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Biofarm Bucure and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT and Biofarm Bucure 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 Biofarm Bucure are associated (or correlated) with IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of Biofarm Bucure i.e., Biofarm Bucure and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Biofarm Bucure and IHUNT TECHNOLOGY
Assuming the 90 days trading horizon Biofarm Bucure is expected to under-perform the IHUNT TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Biofarm Bucure is 4.94 times less risky than IHUNT TECHNOLOGY. The stock trades about -0.1 of its potential returns per unit of risk. The IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 35.00 in IHUNT TECHNOLOGY IMPORT EXPORT on November 4, 2024 and sell it today you would earn a total of 8.00 from holding IHUNT TECHNOLOGY IMPORT EXPORT or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biofarm Bucure vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| Biofarm Bucure |
| IHUNT TECHNOLOGY IMPORT |
Biofarm Bucure and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofarm Bucure and IHUNT TECHNOLOGY
The main advantage of trading using opposite Biofarm Bucure and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofarm Bucure position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.| Biofarm Bucure vs. Turism Hotelur | Biofarm Bucure vs. Compania Hoteliera InterContinental | Biofarm Bucure vs. Infinity Capital Investments | Biofarm Bucure vs. Digi Communications NV |
| IHUNT TECHNOLOGY vs. TRANSILVANIA INVESTMENTS ALLIANCE | IHUNT TECHNOLOGY vs. Digi Communications NV | IHUNT TECHNOLOGY vs. Infinity Capital Investments | IHUNT TECHNOLOGY vs. AROBS TRANSILVANIA SOFTWARE |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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