Correlation Between Biomm SA and Baumer SA
Can any of the company-specific risk be diversified away by investing in both Biomm SA and Baumer SA 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 Biomm SA and Baumer SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomm SA and Baumer SA, you can compare the effects of market volatilities on Biomm SA and Baumer SA 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 Biomm SA with a short position of Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomm SA and Baumer SA.
Diversification Opportunities for Biomm SA and Baumer SA
Pay attention - limited upside
The 3 months correlation between Biomm and Baumer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biomm SA and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA and Biomm SA 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 Biomm SA are associated (or correlated) with Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of Biomm SA i.e., Biomm SA and Baumer SA go up and down completely randomly.
Pair Corralation between Biomm SA and Baumer SA
Assuming the 90 days trading horizon Biomm SA is expected to under-perform the Baumer SA. But the stock apears to be less risky and, when comparing its historical volatility, Biomm SA is 1.84 times less risky than Baumer SA. The stock trades about -0.17 of its potential returns per unit of risk. The Baumer SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Baumer SA on August 30, 2024 and sell it today you would lose (12.00) from holding Baumer SA or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Biomm SA vs. Baumer SA
Performance |
| Timeline |
| Biomm SA |
| Baumer SA |
Biomm SA and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomm SA and Baumer SA
The main advantage of trading using opposite Biomm SA and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomm SA position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| Biomm SA vs. M Dias Branco | Biomm SA vs. Porto Seguro SA | Biomm SA vs. Grendene SA | Biomm SA vs. Hypera SA |
| Baumer SA vs. Fleury SA | Baumer SA vs. Baumer SA | Baumer SA vs. Energisa SA | Baumer SA vs. BTG Pactual Logstica |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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