Correlation Between BioArctic and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both BioArctic and Hansa Biopharma 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 Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and Hansa Biopharma AB, you can compare the effects of market volatilities on BioArctic and Hansa Biopharma 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 Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Hansa Biopharma.
Diversification Opportunities for BioArctic and Hansa Biopharma
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioArctic and Hansa is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB 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 Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of BioArctic i.e., BioArctic and Hansa Biopharma go up and down completely randomly.
Pair Corralation between BioArctic and Hansa Biopharma
Assuming the 90 days trading horizon BioArctic AB is expected to under-perform the Hansa Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, BioArctic AB is 1.51 times less risky than Hansa Biopharma. The stock trades about -0.24 of its potential returns per unit of risk. The Hansa Biopharma AB is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,664 in Hansa Biopharma AB on October 20, 2024 and sell it today you would lose (318.00) from holding Hansa Biopharma AB or give up 8.68% 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. Hansa Biopharma AB
Performance |
| Timeline |
| BioArctic AB |
| Hansa Biopharma AB |
BioArctic and Hansa Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Hansa Biopharma
The main advantage of trading using opposite BioArctic and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma's long position.| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
| Hansa Biopharma vs. Oncopeptides AB | Hansa Biopharma vs. ExpreS2ion Biotech Holding | Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Zealand Pharma AS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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