Correlation Between Biotage AB and Bactiguard Holding
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By analyzing existing cross correlation between Biotage AB and Bactiguard Holding AB, you can compare the effects of market volatilities on Biotage AB and Bactiguard Holding 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 Biotage AB with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and Bactiguard Holding.
Diversification Opportunities for Biotage AB and Bactiguard Holding
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biotage and Bactiguard is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and Biotage 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 Biotage AB are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of Biotage AB i.e., Biotage AB and Bactiguard Holding go up and down completely randomly.
Pair Corralation between Biotage AB and Bactiguard Holding
Assuming the 90 days trading horizon Biotage AB is expected to under-perform the Bactiguard Holding. But the stock apears to be less risky and, when comparing its historical volatility, Biotage AB is 1.03 times less risky than Bactiguard Holding. The stock trades about -0.26 of its potential returns per unit of risk. The Bactiguard Holding AB is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,790 in Bactiguard Holding AB on October 24, 2024 and sell it today you would lose (270.00) from holding Bactiguard Holding AB or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biotage AB vs. Bactiguard Holding AB
Performance |
| Timeline |
| Biotage AB |
| Bactiguard Holding |
Biotage AB and Bactiguard Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotage AB and Bactiguard Holding
The main advantage of trading using opposite Biotage AB and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.| Biotage AB vs. CellaVision AB | Biotage AB vs. Vitrolife AB | Biotage AB vs. Sectra AB | Biotage AB vs. BioGaia AB |
| Bactiguard Holding vs. Biotage AB | Bactiguard Holding vs. CellaVision AB | Bactiguard Holding vs. Bonesupport Holding AB | Bactiguard Holding vs. MedCap 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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