Correlation Between Bonesupport Holding and I Tech
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and I Tech 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 I Tech 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 I Tech, you can compare the effects of market volatilities on Bonesupport Holding and I Tech 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 I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and I Tech.
Diversification Opportunities for Bonesupport Holding and I Tech
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bonesupport and ITECH is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech 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 I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and I Tech go up and down completely randomly.
Pair Corralation between Bonesupport Holding and I Tech
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to under-perform the I Tech. In addition to that, Bonesupport Holding is 1.72 times more volatile than I Tech. It trades about -0.23 of its total potential returns per unit of risk. I Tech is currently generating about -0.03 per unit of volatility. If you would invest 5,750 in I Tech on October 26, 2024 and sell it today you would lose (50.00) from holding I Tech or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. I Tech
Performance |
| Timeline |
| Bonesupport Holding |
| I Tech |
Bonesupport Holding and I Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and I Tech
The main advantage of trading using opposite Bonesupport Holding and I Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, I Tech 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 I Tech will offset losses from the drop in I Tech'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 |
| I Tech vs. Genovis AB | I Tech vs. Bonesupport Holding AB | I Tech vs. Enea AB | I Tech vs. Xvivo Perfusion 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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