Correlation Between BioArctic and Stayble Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioArctic and Stayble Therapeutics 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 Stayble Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and Stayble Therapeutics AB, you can compare the effects of market volatilities on BioArctic and Stayble Therapeutics 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 Stayble Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Stayble Therapeutics.
Diversification Opportunities for BioArctic and Stayble Therapeutics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioArctic and Stayble is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Stayble Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stayble Therapeutics 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 Stayble Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stayble Therapeutics has no effect on the direction of BioArctic i.e., BioArctic and Stayble Therapeutics go up and down completely randomly.
Pair Corralation between BioArctic and Stayble Therapeutics
Assuming the 90 days trading horizon BioArctic AB is expected to under-perform the Stayble Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, BioArctic AB is 2.39 times less risky than Stayble Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Stayble Therapeutics AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Stayble Therapeutics AB on September 3, 2024 and sell it today you would lose (358.00) from holding Stayble Therapeutics AB or give up 86.27% 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. Stayble Therapeutics AB
Performance |
| Timeline |
| BioArctic AB |
| Stayble Therapeutics |
BioArctic and Stayble Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Stayble Therapeutics
The main advantage of trading using opposite BioArctic and Stayble Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Stayble Therapeutics 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 Stayble Therapeutics will offset losses from the drop in Stayble Therapeutics' long position.| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia AB |
| Stayble Therapeutics vs. Simris Alg AB | Stayble Therapeutics vs. Immunovia publ AB | Stayble Therapeutics vs. Sedana Medical AB | Stayble Therapeutics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |