Correlation Between Bio Rad and Ambu AS
Can any of the company-specific risk be diversified away by investing in both Bio Rad and Ambu AS 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 Bio Rad and Ambu AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Rad Laboratories and Ambu AS, you can compare the effects of market volatilities on Bio Rad and Ambu AS 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 Bio Rad with a short position of Ambu AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Ambu AS.
Diversification Opportunities for Bio Rad and Ambu AS
Modest diversification
The 3 months correlation between Bio and Ambu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Ambu AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambu AS and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Ambu AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambu AS has no effect on the direction of Bio Rad i.e., Bio Rad and Ambu AS go up and down completely randomly.
Pair Corralation between Bio Rad and Ambu AS
Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 2.36 times more return on investment than Ambu AS. However, Bio Rad is 2.36 times more volatile than Ambu AS. It trades about 0.07 of its potential returns per unit of risk. Ambu AS is currently generating about 0.07 per unit of risk. If you would invest 28,896 in Bio Rad Laboratories on September 1, 2024 and sell it today you would earn a total of 5,157 from holding Bio Rad Laboratories or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bio Rad Laboratories vs. Ambu AS
Performance |
| Timeline |
| Bio Rad Laboratories |
| Ambu AS |
Bio Rad and Ambu AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Rad and Ambu AS
The main advantage of trading using opposite Bio Rad and Ambu AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, Ambu AS 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 Ambu AS will offset losses from the drop in Ambu AS's long position.| Bio Rad vs. Tandem Diabetes Care | Bio Rad vs. DexCom Inc | Bio Rad vs. Inspire Medical Systems | Bio Rad vs. Penumbra |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |