Correlation Between Bio Works and Corem Property
Can any of the company-specific risk be diversified away by investing in both Bio Works and Corem Property 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 Bio Works and Corem Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Works Technologies AB and Corem Property Group, you can compare the effects of market volatilities on Bio Works and Corem Property 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 Bio Works with a short position of Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Works and Corem Property.
Diversification Opportunities for Bio Works and Corem Property
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bio and Corem is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bio Works Technologies AB and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group and Bio Works 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 Bio Works Technologies AB are associated (or correlated) with Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of Bio Works i.e., Bio Works and Corem Property go up and down completely randomly.
Pair Corralation between Bio Works and Corem Property
Assuming the 90 days trading horizon Bio Works Technologies AB is expected to generate 1.37 times more return on investment than Corem Property. However, Bio Works is 1.37 times more volatile than Corem Property Group. It trades about 0.0 of its potential returns per unit of risk. Corem Property Group is currently generating about -0.12 per unit of risk. If you would invest 90.00 in Bio Works Technologies AB on September 12, 2024 and sell it today you would lose (1.00) from holding Bio Works Technologies AB or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Works Technologies AB vs. Corem Property Group
Performance |
| Timeline |
| Bio Works Technologies |
| Corem Property Group |
Bio Works and Corem Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Works and Corem Property
The main advantage of trading using opposite Bio Works and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Works position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property's long position.The idea behind Bio Works Technologies AB and Corem Property Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Corem Property vs. Corem Property Group | Corem Property vs. ALM Equity AB | Corem Property vs. Fastighets AB Balder | Corem Property vs. KABE Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |