Correlation Between BioGaia AB and Humble Group
Can any of the company-specific risk be diversified away by investing in both BioGaia AB and Humble Group 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 BioGaia AB and Humble Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioGaia AB and Humble Group AB, you can compare the effects of market volatilities on BioGaia AB and Humble Group 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 BioGaia AB with a short position of Humble Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioGaia AB and Humble Group.
Diversification Opportunities for BioGaia AB and Humble Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioGaia and Humble is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BioGaia AB and Humble Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humble Group AB and BioGaia AB 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 BioGaia AB are associated (or correlated) with Humble Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humble Group AB has no effect on the direction of BioGaia AB i.e., BioGaia AB and Humble Group go up and down completely randomly.
Pair Corralation between BioGaia AB and Humble Group
Assuming the 90 days trading horizon BioGaia AB is expected to generate 0.89 times more return on investment than Humble Group. However, BioGaia AB is 1.13 times less risky than Humble Group. It trades about 0.17 of its potential returns per unit of risk. Humble Group AB is currently generating about -0.15 per unit of risk. If you would invest 11,160 in BioGaia AB on October 25, 2024 and sell it today you would earn a total of 510.00 from holding BioGaia AB or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
BioGaia AB vs. Humble Group AB
Performance |
| Timeline |
| BioGaia AB |
| Humble Group AB |
BioGaia AB and Humble Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioGaia AB and Humble Group
The main advantage of trading using opposite BioGaia AB and Humble Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioGaia AB position performs unexpectedly, Humble Group 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 Humble Group will offset losses from the drop in Humble Group's long position.| BioGaia AB vs. Biotage AB | BioGaia AB vs. CellaVision AB | BioGaia AB vs. Sectra AB | BioGaia AB vs. Elekta AB |
| Humble Group vs. Samhllsbyggnadsbolaget i Norden | Humble Group vs. Media and Games | Humble Group vs. Hexatronic Group AB | Humble Group vs. Sinch 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |