Correlation Between BioPorto and Matas AS
Can any of the company-specific risk be diversified away by investing in both BioPorto and Matas AS 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 BioPorto and Matas AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioPorto and Matas AS, you can compare the effects of market volatilities on BioPorto and Matas AS 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 BioPorto with a short position of Matas AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioPorto and Matas AS.
Diversification Opportunities for BioPorto and Matas AS
Significant diversification
The 3 months correlation between BioPorto and Matas is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding BioPorto and Matas AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matas AS and BioPorto 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 BioPorto are associated (or correlated) with Matas AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matas AS has no effect on the direction of BioPorto i.e., BioPorto and Matas AS go up and down completely randomly.
Pair Corralation between BioPorto and Matas AS
Assuming the 90 days trading horizon BioPorto is expected to under-perform the Matas AS. In addition to that, BioPorto is 2.06 times more volatile than Matas AS. It trades about -0.01 of its total potential returns per unit of risk. Matas AS is currently generating about 0.08 per unit of volatility. If you would invest 6,544 in Matas AS on August 29, 2024 and sell it today you would earn a total of 6,096 from holding Matas AS or generate 93.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioPorto vs. Matas AS
Performance |
| Timeline |
| BioPorto |
| Matas AS |
BioPorto and Matas AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioPorto and Matas AS
The main advantage of trading using opposite BioPorto and Matas AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioPorto position performs unexpectedly, Matas AS 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 Matas AS will offset losses from the drop in Matas AS's long position.| BioPorto vs. Ambu AS | BioPorto vs. Bavarian Nordic | BioPorto vs. Zealand Pharma AS | BioPorto vs. Orphazyme AS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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