Correlation Between Biotage AB and Hedera Group
Can any of the company-specific risk be diversified away by investing in both Biotage AB and Hedera Group 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 Hedera Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotage AB and Hedera Group publ, you can compare the effects of market volatilities on Biotage AB and Hedera Group 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 Hedera Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and Hedera Group.
Diversification Opportunities for Biotage AB and Hedera Group
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Biotage and Hedera is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and Hedera Group publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Group publ 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 Hedera Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Group publ has no effect on the direction of Biotage AB i.e., Biotage AB and Hedera Group go up and down completely randomly.
Pair Corralation between Biotage AB and Hedera Group
Assuming the 90 days trading horizon Biotage AB is expected to generate 0.36 times more return on investment than Hedera Group. However, Biotage AB is 2.77 times less risky than Hedera Group. It trades about 0.06 of its potential returns per unit of risk. Hedera Group publ is currently generating about 0.02 per unit of risk. If you would invest 15,990 in Biotage AB on September 14, 2024 and sell it today you would earn a total of 330.00 from holding Biotage AB or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Biotage AB vs. Hedera Group publ
Performance |
| Timeline |
| Biotage AB |
| Hedera Group publ |
Biotage AB and Hedera Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotage AB and Hedera Group
The main advantage of trading using opposite Biotage AB and Hedera Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, Hedera Group 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 Hedera Group will offset losses from the drop in Hedera Group's long position.| Biotage AB vs. Mendus AB | Biotage AB vs. Cantargia AB | Biotage AB vs. BioInvent International AB | Biotage AB vs. Isofol Medical AB |
| Hedera Group vs. Clean Motion AB | Hedera Group vs. Heliospectra publ AB | Hedera Group vs. Gaming Corps AB | Hedera Group vs. Doxa 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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