Correlation Between BioArctic and Lipigon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BioArctic and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and Lipigon Pharmaceuticals AB, you can compare the effects of market volatilities on BioArctic and Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Lipigon Pharmaceuticals.
Diversification Opportunities for BioArctic and Lipigon Pharmaceuticals
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioArctic and Lipigon is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Lipigon Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipigon Pharmaceuticals has no effect on the direction of BioArctic i.e., BioArctic and Lipigon Pharmaceuticals go up and down completely randomly.
Pair Corralation between BioArctic and Lipigon Pharmaceuticals
Assuming the 90 days trading horizon BioArctic AB is expected to generate 0.6 times more return on investment than Lipigon Pharmaceuticals. However, BioArctic AB is 1.65 times less risky than Lipigon Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Lipigon Pharmaceuticals AB is currently generating about -0.02 per unit of risk. If you would invest 25,000 in BioArctic AB on November 28, 2024 and sell it today you would lose (660.00) from holding BioArctic AB or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioArctic AB vs. Lipigon Pharmaceuticals AB
Performance |
| Timeline |
| BioArctic AB |
| Lipigon Pharmaceuticals |
BioArctic and Lipigon Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Lipigon Pharmaceuticals
The main advantage of trading using opposite BioArctic and Lipigon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals will offset losses from the drop in Lipigon Pharmaceuticals' long position.| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
| Lipigon Pharmaceuticals vs. Sprint Bioscience AB | Lipigon Pharmaceuticals vs. BioArctic AB | Lipigon Pharmaceuticals vs. Veg of Lund | Lipigon Pharmaceuticals vs. Ascelia Pharma 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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |