Correlation Between Bonesupport Holding and Sedana Medical
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Sedana 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 Sedana 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 Sedana Medical AB, you can compare the effects of market volatilities on Bonesupport Holding and Sedana 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 Sedana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Sedana Medical.
Diversification Opportunities for Bonesupport Holding and Sedana Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bonesupport and Sedana is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Sedana Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sedana Medical AB 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 Sedana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sedana Medical AB has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Sedana Medical go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Sedana Medical
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to generate 0.73 times more return on investment than Sedana Medical. However, Bonesupport Holding AB is 1.37 times less risky than Sedana Medical. It trades about -0.23 of its potential returns per unit of risk. Sedana Medical AB is currently generating about -0.21 per unit of risk. If you would invest 39,500 in Bonesupport Holding AB on October 26, 2024 and sell it today you would lose (4,000) from holding Bonesupport Holding AB or give up 10.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. Sedana Medical AB
Performance |
| Timeline |
| Bonesupport Holding |
| Sedana Medical AB |
Bonesupport Holding and Sedana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and Sedana Medical
The main advantage of trading using opposite Bonesupport Holding and Sedana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Sedana 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 Sedana Medical will offset losses from the drop in Sedana 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 |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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