Correlation Between BB Biotech and Lyxor Euro
Can any of the company-specific risk be diversified away by investing in both BB Biotech and Lyxor Euro 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 BB Biotech and Lyxor Euro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BB Biotech AG and Lyxor Euro Stoxx, you can compare the effects of market volatilities on BB Biotech and Lyxor Euro 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 BB Biotech with a short position of Lyxor Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of BB Biotech and Lyxor Euro.
Diversification Opportunities for BB Biotech and Lyxor Euro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BION and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BB Biotech AG and Lyxor Euro Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Euro Stoxx and BB Biotech 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 BB Biotech AG are associated (or correlated) with Lyxor Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Euro Stoxx has no effect on the direction of BB Biotech i.e., BB Biotech and Lyxor Euro go up and down completely randomly.
Pair Corralation between BB Biotech and Lyxor Euro
If you would invest 0.00 in Lyxor Euro Stoxx on December 7, 2024 and sell it today you would earn a total of 0.00 from holding Lyxor Euro Stoxx or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
BB Biotech AG vs. Lyxor Euro Stoxx
Performance |
| Timeline |
| BB Biotech AG |
| Lyxor Euro Stoxx |
BB Biotech and Lyxor Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BB Biotech and Lyxor Euro
The main advantage of trading using opposite BB Biotech and Lyxor Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BB Biotech position performs unexpectedly, Lyxor Euro 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 Lyxor Euro will offset losses from the drop in Lyxor Euro's long position.| BB Biotech vs. Swiss Life Holding | BB Biotech vs. Swiss Re AG | BB Biotech vs. Helvetia Holding AG | BB Biotech vs. Partners Group Holding |
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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