Correlation Between BioArctic and ExpreS2ion Biotech
Can any of the company-specific risk be diversified away by investing in both BioArctic and ExpreS2ion Biotech 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 BioArctic and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on BioArctic and ExpreS2ion Biotech 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 BioArctic with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and ExpreS2ion Biotech.
Diversification Opportunities for BioArctic and ExpreS2ion Biotech
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioArctic and ExpreS2ion is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech and BioArctic 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 BioArctic AB are associated (or correlated) with ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of BioArctic i.e., BioArctic and ExpreS2ion Biotech go up and down completely randomly.
Pair Corralation between BioArctic and ExpreS2ion Biotech
Assuming the 90 days trading horizon BioArctic AB is expected to under-perform the ExpreS2ion Biotech. But the stock apears to be less risky and, when comparing its historical volatility, BioArctic AB is 3.44 times less risky than ExpreS2ion Biotech. The stock trades about -0.03 of its potential returns per unit of risk. The ExpreS2ion Biotech Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 16,681 in ExpreS2ion Biotech Holding on September 2, 2024 and sell it today you would lose (14,596) from holding ExpreS2ion Biotech Holding or give up 87.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioArctic AB vs. ExpreS2ion Biotech Holding
Performance |
| Timeline |
| BioArctic AB |
| ExpreS2ion Biotech |
BioArctic and ExpreS2ion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and ExpreS2ion Biotech
The main advantage of trading using opposite BioArctic and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
| ExpreS2ion Biotech vs. Hansa Biopharma AB | ExpreS2ion Biotech vs. Saniona AB | ExpreS2ion Biotech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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