Correlation Between Bonesupport Holding and CoinShares International
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and CoinShares International 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 Bonesupport Holding and CoinShares International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and CoinShares International, you can compare the effects of market volatilities on Bonesupport Holding and CoinShares International 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 Bonesupport Holding with a short position of CoinShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and CoinShares International.
Diversification Opportunities for Bonesupport Holding and CoinShares International
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bonesupport and CoinShares is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and CoinShares International go up and down completely randomly.
Pair Corralation between Bonesupport Holding and CoinShares International
Assuming the 90 days trading horizon Bonesupport Holding is expected to generate 5.07 times less return on investment than CoinShares International. But when comparing it to its historical volatility, Bonesupport Holding AB is 2.52 times less risky than CoinShares International. It trades about 0.21 of its potential returns per unit of risk. CoinShares International is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 5,320 in CoinShares International on September 1, 2024 and sell it today you would earn a total of 3,160 from holding CoinShares International or generate 59.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bonesupport Holding AB vs. CoinShares International
Performance |
| Timeline |
| Bonesupport Holding |
| CoinShares International |
Bonesupport Holding and CoinShares International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and CoinShares International
The main advantage of trading using opposite Bonesupport Holding and CoinShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, CoinShares International 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 CoinShares International will offset losses from the drop in CoinShares International's long position.| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Camurus AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
| CoinShares International vs. Cint Group AB | CoinShares International vs. Bonesupport Holding AB | CoinShares International vs. Catena Media plc | CoinShares International vs. Hexatronic 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 CEOs Directory module to screen CEOs from public companies around the world.
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