Correlation Between BioArctic and Ziccum AB
Can any of the company-specific risk be diversified away by investing in both BioArctic and Ziccum AB 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 Ziccum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioArctic AB and Ziccum AB, you can compare the effects of market volatilities on BioArctic and Ziccum AB 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 Ziccum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioArctic and Ziccum AB.
Diversification Opportunities for BioArctic and Ziccum AB
Very good diversification
The 3 months correlation between BioArctic and Ziccum is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BioArctic AB and Ziccum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziccum 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 Ziccum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziccum AB has no effect on the direction of BioArctic i.e., BioArctic and Ziccum AB go up and down completely randomly.
Pair Corralation between BioArctic and Ziccum AB
Assuming the 90 days trading horizon BioArctic AB is expected to generate 0.63 times more return on investment than Ziccum AB. However, BioArctic AB is 1.6 times less risky than Ziccum AB. It trades about 0.17 of its potential returns per unit of risk. Ziccum AB is currently generating about -0.28 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioArctic AB vs. Ziccum AB
Performance |
| Timeline |
| BioArctic AB |
| Ziccum AB |
BioArctic and Ziccum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioArctic and Ziccum AB
The main advantage of trading using opposite BioArctic and Ziccum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioArctic position performs unexpectedly, Ziccum AB 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 Ziccum AB will offset losses from the drop in Ziccum AB's long position.The idea behind BioArctic AB and Ziccum 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.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |