Correlation Between Biohit Oyj and Nanoform Finland
Can any of the company-specific risk be diversified away by investing in both Biohit Oyj and Nanoform Finland 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 Biohit Oyj and Nanoform Finland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biohit Oyj B and Nanoform Finland Plc, you can compare the effects of market volatilities on Biohit Oyj and Nanoform Finland 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 Biohit Oyj with a short position of Nanoform Finland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biohit Oyj and Nanoform Finland.
Diversification Opportunities for Biohit Oyj and Nanoform Finland
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biohit and Nanoform is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Biohit Oyj B and Nanoform Finland Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanoform Finland Plc and Biohit Oyj 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 Biohit Oyj B are associated (or correlated) with Nanoform Finland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanoform Finland Plc has no effect on the direction of Biohit Oyj i.e., Biohit Oyj and Nanoform Finland go up and down completely randomly.
Pair Corralation between Biohit Oyj and Nanoform Finland
Assuming the 90 days trading horizon Biohit Oyj B is expected to under-perform the Nanoform Finland. But the stock apears to be less risky and, when comparing its historical volatility, Biohit Oyj B is 2.8 times less risky than Nanoform Finland. The stock trades about -0.17 of its potential returns per unit of risk. The Nanoform Finland Plc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Nanoform Finland Plc on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Nanoform Finland Plc or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biohit Oyj B vs. Nanoform Finland Plc
Performance |
| Timeline |
| Biohit Oyj B |
| Nanoform Finland Plc |
Biohit Oyj and Nanoform Finland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biohit Oyj and Nanoform Finland
The main advantage of trading using opposite Biohit Oyj and Nanoform Finland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biohit Oyj position performs unexpectedly, Nanoform Finland 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 Nanoform Finland will offset losses from the drop in Nanoform Finland's long position.| Biohit Oyj vs. Bittium Oyj | Biohit Oyj vs. Dovre Group Plc | Biohit Oyj vs. Afarak Group Oyj | Biohit Oyj vs. Tecnotree Oyj |
| Nanoform Finland vs. Spinnova Oy | Nanoform Finland vs. Qt Group Oyj | Nanoform Finland vs. Kempower Oyj | Nanoform Finland vs. Harvia Oyj |
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
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |