Correlation Between Bluejay Diagnostics and Sonova Holding
Can any of the company-specific risk be diversified away by investing in both Bluejay Diagnostics and Sonova Holding 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 Bluejay Diagnostics and Sonova Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluejay Diagnostics and Sonova Holding AG, you can compare the effects of market volatilities on Bluejay Diagnostics and Sonova Holding 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 Bluejay Diagnostics with a short position of Sonova Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluejay Diagnostics and Sonova Holding.
Diversification Opportunities for Bluejay Diagnostics and Sonova Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bluejay and Sonova is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bluejay Diagnostics and Sonova Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonova Holding AG and Bluejay Diagnostics 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 Bluejay Diagnostics are associated (or correlated) with Sonova Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonova Holding AG has no effect on the direction of Bluejay Diagnostics i.e., Bluejay Diagnostics and Sonova Holding go up and down completely randomly.
Pair Corralation between Bluejay Diagnostics and Sonova Holding
Given the investment horizon of 90 days Bluejay Diagnostics is expected to under-perform the Sonova Holding. In addition to that, Bluejay Diagnostics is 5.77 times more volatile than Sonova Holding AG. It trades about -0.09 of its total potential returns per unit of risk. Sonova Holding AG is currently generating about 0.04 per unit of volatility. If you would invest 5,060 in Sonova Holding AG on August 30, 2024 and sell it today you would earn a total of 1,825 from holding Sonova Holding AG or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bluejay Diagnostics vs. Sonova Holding AG
Performance |
| Timeline |
| Bluejay Diagnostics |
| Sonova Holding AG |
Bluejay Diagnostics and Sonova Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluejay Diagnostics and Sonova Holding
The main advantage of trading using opposite Bluejay Diagnostics and Sonova Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluejay Diagnostics position performs unexpectedly, Sonova Holding 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 Sonova Holding will offset losses from the drop in Sonova Holding's long position.| Bluejay Diagnostics vs. Bone Biologics Corp | Bluejay Diagnostics vs. Nuwellis | Bluejay Diagnostics vs. Heart Test Laboratories | Bluejay Diagnostics vs. Tivic Health Systems |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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