Correlation Between Bionano Genomics and Coloplast
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Coloplast 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 Bionano Genomics and Coloplast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and Coloplast AS, you can compare the effects of market volatilities on Bionano Genomics and Coloplast 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 Bionano Genomics with a short position of Coloplast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Coloplast.
Diversification Opportunities for Bionano Genomics and Coloplast
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bionano and Coloplast is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Coloplast AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast AS and Bionano Genomics 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 Bionano Genomics are associated (or correlated) with Coloplast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast AS has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Coloplast go up and down completely randomly.
Pair Corralation between Bionano Genomics and Coloplast
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Coloplast. In addition to that, Bionano Genomics is 3.24 times more volatile than Coloplast AS. It trades about -0.15 of its total potential returns per unit of risk. Coloplast AS is currently generating about 0.04 per unit of volatility. If you would invest 11,953 in Coloplast AS on September 1, 2024 and sell it today you would earn a total of 904.00 from holding Coloplast AS or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionano Genomics vs. Coloplast AS
Performance |
| Timeline |
| Bionano Genomics |
| Coloplast AS |
Bionano Genomics and Coloplast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and Coloplast
The main advantage of trading using opposite Bionano Genomics and Coloplast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Coloplast 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 Coloplast will offset losses from the drop in Coloplast's long position.| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
| Coloplast vs. Sysmex Corp | Coloplast vs. Straumann Holding AG | Coloplast vs. Essilor International SA | Coloplast vs. EssilorLuxottica Socit anonyme |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |