Correlation Between BioArctic and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both BioArctic and Isofol Medical 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 Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and Isofol Medical AB, you can compare the effects of market volatilities on BioArctic and Isofol Medical 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 Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Isofol Medical.
Diversification Opportunities for BioArctic and Isofol Medical
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioArctic and Isofol is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical 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 Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of BioArctic i.e., BioArctic and Isofol Medical go up and down completely randomly.
Pair Corralation between BioArctic and Isofol Medical
Assuming the 90 days trading horizon BioArctic AB is expected to generate 0.85 times more return on investment than Isofol Medical. However, BioArctic AB is 1.18 times less risky than Isofol Medical. It trades about 0.11 of its potential returns per unit of risk. Isofol Medical AB is currently generating about 0.08 per unit of risk. If you would invest 15,760 in BioArctic AB on September 3, 2024 and sell it today you would earn a total of 3,550 from holding BioArctic AB or generate 22.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioArctic AB vs. Isofol Medical AB
Performance |
| Timeline |
| BioArctic AB |
| Isofol Medical AB |
BioArctic and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Isofol Medical
The main advantage of trading using opposite BioArctic and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
| Isofol Medical vs. Simris Alg AB | Isofol Medical vs. Immunovia publ AB | Isofol Medical vs. Sedana Medical AB | Isofol Medical vs. KABE Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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