Correlation Between Biotage AB and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Biotage AB and Fluoguide 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 Biotage AB and Fluoguide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotage AB and Fluoguide AS, you can compare the effects of market volatilities on Biotage AB and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and Fluoguide.
Diversification Opportunities for Biotage AB and Fluoguide
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biotage and Fluoguide is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Biotage AB i.e., Biotage AB and Fluoguide go up and down completely randomly.
Pair Corralation between Biotage AB and Fluoguide
Assuming the 90 days trading horizon Biotage AB is expected to under-perform the Fluoguide. But the stock apears to be less risky and, when comparing its historical volatility, Biotage AB is 1.89 times less risky than Fluoguide. The stock trades about -0.08 of its potential returns per unit of risk. The Fluoguide AS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,600 in Fluoguide AS on September 2, 2024 and sell it today you would earn a total of 315.00 from holding Fluoguide AS or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biotage AB vs. Fluoguide AS
Performance |
| Timeline |
| Biotage AB |
| Fluoguide AS |
Biotage AB and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotage AB and Fluoguide
The main advantage of trading using opposite Biotage AB and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Biotage AB vs. Cantargia AB | Biotage AB vs. BioArctic AB | Biotage AB vs. Oncopeptides AB | Biotage AB vs. Hansa Biopharma AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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