Correlation Between Bioter SA and Ekter SA
Can any of the company-specific risk be diversified away by investing in both Bioter SA and Ekter 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 Bioter SA and Ekter SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioter SA and Ekter SA, you can compare the effects of market volatilities on Bioter SA and Ekter 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 Bioter SA with a short position of Ekter SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioter SA and Ekter SA.
Diversification Opportunities for Bioter SA and Ekter SA
Pay attention - limited upside
The 3 months correlation between Bioter and Ekter is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bioter SA and Ekter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekter SA and Bioter 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 Bioter SA are associated (or correlated) with Ekter SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekter SA has no effect on the direction of Bioter SA i.e., Bioter SA and Ekter SA go up and down completely randomly.
Pair Corralation between Bioter SA and Ekter SA
Assuming the 90 days trading horizon Bioter SA is expected to generate 1.32 times more return on investment than Ekter SA. However, Bioter SA is 1.32 times more volatile than Ekter SA. It trades about 0.03 of its potential returns per unit of risk. Ekter SA is currently generating about 0.03 per unit of risk. If you would invest 26.00 in Bioter SA on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Bioter SA or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.11% |
| Values | Daily Returns |
Bioter SA vs. Ekter SA
Performance |
| Timeline |
| Bioter SA |
| Ekter SA |
Bioter SA and Ekter SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioter SA and Ekter SA
The main advantage of trading using opposite Bioter SA and Ekter SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioter SA position performs unexpectedly, Ekter 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 Ekter SA will offset losses from the drop in Ekter SA's long position.| Bioter SA vs. Avax SA | Bioter SA vs. Ekter SA | Bioter SA vs. Intracom Constructions Societe | Bioter SA vs. Alumil Aluminium Industry |
| Ekter SA vs. Mytilineos SA | Ekter SA vs. Greek Organization of | Ekter SA vs. Motor Oil Corinth | Ekter SA vs. Hellenic Petroleum SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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