Correlation Between BioGaia AB and Mycronic Publ
Can any of the company-specific risk be diversified away by investing in both BioGaia AB and Mycronic Publ 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 Mycronic Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioGaia AB and Mycronic publ AB, you can compare the effects of market volatilities on BioGaia AB and Mycronic Publ 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 Mycronic Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioGaia AB and Mycronic Publ.
Diversification Opportunities for BioGaia AB and Mycronic Publ
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioGaia and Mycronic is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BioGaia AB and Mycronic publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mycronic publ 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 Mycronic Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mycronic publ AB has no effect on the direction of BioGaia AB i.e., BioGaia AB and Mycronic Publ go up and down completely randomly.
Pair Corralation between BioGaia AB and Mycronic Publ
Assuming the 90 days trading horizon BioGaia AB is expected to generate 15.56 times less return on investment than Mycronic Publ. But when comparing it to its historical volatility, BioGaia AB is 1.08 times less risky than Mycronic Publ. It trades about 0.01 of its potential returns per unit of risk. Mycronic publ AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 23,036 in Mycronic publ AB on August 31, 2024 and sell it today you would earn a total of 15,624 from holding Mycronic publ AB or generate 67.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioGaia AB vs. Mycronic publ AB
Performance |
| Timeline |
| BioGaia AB |
| Mycronic publ AB |
BioGaia AB and Mycronic Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioGaia AB and Mycronic Publ
The main advantage of trading using opposite BioGaia AB and Mycronic Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioGaia AB position performs unexpectedly, Mycronic Publ 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 Mycronic Publ will offset losses from the drop in Mycronic Publ's long position.| BioGaia AB vs. Biotage AB | BioGaia AB vs. CellaVision AB | BioGaia AB vs. Sectra AB | BioGaia AB vs. Elekta AB |
| Mycronic Publ vs. Nolato AB | Mycronic Publ vs. Vitrolife AB | Mycronic Publ vs. Bure Equity AB | Mycronic Publ vs. Sectra 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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