Correlation Between Bonesupport Holding and Redsense Medical
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Redsense Medical 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 Redsense Medical 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 Redsense Medical AB, you can compare the effects of market volatilities on Bonesupport Holding and Redsense Medical 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 Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Redsense Medical.
Diversification Opportunities for Bonesupport Holding and Redsense Medical
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonesupport and Redsense is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical 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 Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Redsense Medical go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Redsense Medical
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to generate 0.37 times more return on investment than Redsense Medical. However, Bonesupport Holding AB is 2.72 times less risky than Redsense Medical. It trades about 0.21 of its potential returns per unit of risk. Redsense Medical AB is currently generating about 0.05 per unit of risk. If you would invest 33,500 in Bonesupport Holding AB on September 1, 2024 and sell it today you would earn a total of 3,140 from holding Bonesupport Holding AB or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. Redsense Medical AB
Performance |
| Timeline |
| Bonesupport Holding |
| Redsense Medical |
Bonesupport Holding and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and Redsense Medical
The main advantage of trading using opposite Bonesupport Holding and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical'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 |
| Redsense Medical vs. AddLife AB | Redsense Medical vs. Biotage AB | Redsense Medical vs. Synsam AB | Redsense Medical vs. Bonesupport Holding 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |