Correlation Between Biovica International and BioArctic
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By analyzing existing cross correlation between Biovica International AB and BioArctic AB, you can compare the effects of market volatilities on Biovica International and BioArctic 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 Biovica International with a short position of BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biovica International and BioArctic.
Diversification Opportunities for Biovica International and BioArctic
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biovica and BioArctic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Biovica International AB and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic AB and Biovica International 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 Biovica International AB are associated (or correlated) with BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of Biovica International i.e., Biovica International and BioArctic go up and down completely randomly.
Pair Corralation between Biovica International and BioArctic
Assuming the 90 days trading horizon Biovica International AB is expected to under-perform the BioArctic. In addition to that, Biovica International is 1.38 times more volatile than BioArctic AB. It trades about -0.03 of its total potential returns per unit of risk. BioArctic AB is currently generating about 0.02 per unit of volatility. If you would invest 25,720 in BioArctic AB on December 2, 2024 and sell it today you would lose (1,260) from holding BioArctic AB or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biovica International AB vs. BioArctic AB
Performance |
| Timeline |
| Biovica International |
| BioArctic AB |
Biovica International and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biovica International and BioArctic
The main advantage of trading using opposite Biovica International and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biovica International position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| Biovica International vs. Hansa Biopharma AB | ||
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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