Correlation Between Bionano Genomics and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Bionano Genomics and Straumann 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 Bionano Genomics and Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionano Genomics and Straumann Holding AG, you can compare the effects of market volatilities on Bionano Genomics and Straumann 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 Bionano Genomics with a short position of Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionano Genomics and Straumann Holding.
Diversification Opportunities for Bionano Genomics and Straumann Holding
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bionano and Straumann is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding 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 Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Bionano Genomics i.e., Bionano Genomics and Straumann Holding go up and down completely randomly.
Pair Corralation between Bionano Genomics and Straumann Holding
Given the investment horizon of 90 days Bionano Genomics is expected to under-perform the Straumann Holding. In addition to that, Bionano Genomics is 2.32 times more volatile than Straumann Holding AG. It trades about -0.14 of its total potential returns per unit of risk. Straumann Holding AG is currently generating about 0.02 per unit of volatility. If you would invest 1,207 in Straumann Holding AG on September 3, 2024 and sell it today you would earn a total of 87.00 from holding Straumann Holding AG or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionano Genomics vs. Straumann Holding AG
Performance |
| Timeline |
| Bionano Genomics |
| Straumann Holding |
Bionano Genomics and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionano Genomics and Straumann Holding
The main advantage of trading using opposite Bionano Genomics and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionano Genomics position performs unexpectedly, Straumann 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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