Correlation Between Biotron and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Biotron and Fennec Pharmaceuticals 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 Biotron and Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotron Limited and Fennec Pharmaceuticals, you can compare the effects of market volatilities on Biotron and Fennec Pharmaceuticals 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 Biotron with a short position of Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotron and Fennec Pharmaceuticals.
Diversification Opportunities for Biotron and Fennec Pharmaceuticals
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biotron and Fennec is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Biotron Limited and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals and Biotron 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 Biotron Limited are associated (or correlated) with Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of Biotron i.e., Biotron and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between Biotron and Fennec Pharmaceuticals
Assuming the 90 days horizon Biotron Limited is expected to generate 13.58 times more return on investment than Fennec Pharmaceuticals. However, Biotron is 13.58 times more volatile than Fennec Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 2.07 in Biotron Limited on October 25, 2024 and sell it today you would lose (0.85) from holding Biotron Limited or give up 41.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Biotron Limited vs. Fennec Pharmaceuticals
Performance |
| Timeline |
| Biotron Limited |
| Fennec Pharmaceuticals |
Biotron and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotron and Fennec Pharmaceuticals
The main advantage of trading using opposite Biotron and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotron position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.| Biotron vs. biOasis Technologies | Biotron vs. Covalon Technologies | Biotron vs. Mosaic Immunoengineering | Biotron vs. Cellectis SA |
| Fennec Pharmaceuticals vs. Molecular Partners AG | Fennec Pharmaceuticals vs. MediciNova | Fennec Pharmaceuticals vs. Anebulo Pharmaceuticals | Fennec Pharmaceuticals vs. Champions Oncology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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