Correlation Between Barinthus Biotherapeutics and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both Barinthus Biotherapeutics and ArcelorMittal 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 Barinthus Biotherapeutics and ArcelorMittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barinthus Biotherapeutics plc and ArcelorMittal SA ADR, you can compare the effects of market volatilities on Barinthus Biotherapeutics and ArcelorMittal 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 Barinthus Biotherapeutics with a short position of ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barinthus Biotherapeutics and ArcelorMittal.
Diversification Opportunities for Barinthus Biotherapeutics and ArcelorMittal
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barinthus and ArcelorMittal is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Barinthus Biotherapeutics plc and ArcelorMittal SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA ADR and Barinthus Biotherapeutics 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 Barinthus Biotherapeutics plc are associated (or correlated) with ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA ADR has no effect on the direction of Barinthus Biotherapeutics i.e., Barinthus Biotherapeutics and ArcelorMittal go up and down completely randomly.
Pair Corralation between Barinthus Biotherapeutics and ArcelorMittal
Given the investment horizon of 90 days Barinthus Biotherapeutics plc is expected to under-perform the ArcelorMittal. In addition to that, Barinthus Biotherapeutics is 4.01 times more volatile than ArcelorMittal SA ADR. It trades about -0.16 of its total potential returns per unit of risk. ArcelorMittal SA ADR is currently generating about 0.07 per unit of volatility. If you would invest 2,457 in ArcelorMittal SA ADR on September 5, 2024 and sell it today you would earn a total of 67.00 from holding ArcelorMittal SA ADR or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barinthus Biotherapeutics plc vs. ArcelorMittal SA ADR
Performance |
| Timeline |
| Barinthus Biotherapeutics |
| ArcelorMittal SA ADR |
Barinthus Biotherapeutics and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barinthus Biotherapeutics and ArcelorMittal
The main advantage of trading using opposite Barinthus Biotherapeutics and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barinthus Biotherapeutics position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| Barinthus Biotherapeutics vs. Kaltura | Barinthus Biotherapeutics vs. Where Food Comes | Barinthus Biotherapeutics vs. Datadog | Barinthus Biotherapeutics vs. NetSol Technologies |
| ArcelorMittal vs. Constellium Nv | ArcelorMittal vs. Century Aluminum | ArcelorMittal vs. China Hongqiao Group | ArcelorMittal vs. Kaiser Aluminum |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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