Correlation Between BioArctic and Simris Alg
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By analyzing existing cross correlation between BioArctic AB and Simris Alg AB, you can compare the effects of market volatilities on BioArctic and Simris Alg 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 Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Simris Alg.
Diversification Opportunities for BioArctic and Simris Alg
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioArctic and Simris is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Simris Alg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simris Alg 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 Simris Alg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simris Alg AB has no effect on the direction of BioArctic i.e., BioArctic and Simris Alg go up and down completely randomly.
Pair Corralation between BioArctic and Simris Alg
Assuming the 90 days trading horizon BioArctic AB is expected to generate 0.79 times more return on investment than Simris Alg. However, BioArctic AB is 1.27 times less risky than Simris Alg. It trades about 0.17 of its potential returns per unit of risk. Simris Alg AB is currently generating about 0.0 per unit of risk. If you would invest 14,450 in BioArctic AB on September 12, 2024 and sell it today you would earn a total of 3,580 from holding BioArctic AB or generate 24.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioArctic AB vs. Simris Alg AB
Performance |
| Timeline |
| BioArctic AB |
| Simris Alg AB |
BioArctic and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Simris Alg
The main advantage of trading using opposite BioArctic and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Simris Alg 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 Simris Alg will offset losses from the drop in Simris Alg's long position.The idea behind BioArctic AB and Simris Alg AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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