Correlation Between BS Group and Vivoryon Therapeutics
Can any of the company-specific risk be diversified away by investing in both BS Group and Vivoryon Therapeutics 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 BS Group and Vivoryon Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BS Group SA and Vivoryon Therapeutics NV, you can compare the effects of market volatilities on BS Group and Vivoryon Therapeutics 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 BS Group with a short position of Vivoryon Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BS Group and Vivoryon Therapeutics.
Diversification Opportunities for BS Group and Vivoryon Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BSGR and Vivoryon is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BS Group SA and Vivoryon Therapeutics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivoryon Therapeutics and BS Group 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 BS Group SA are associated (or correlated) with Vivoryon Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivoryon Therapeutics has no effect on the direction of BS Group i.e., BS Group and Vivoryon Therapeutics go up and down completely randomly.
Pair Corralation between BS Group and Vivoryon Therapeutics
Assuming the 90 days trading horizon BS Group SA is expected to generate 1.63 times more return on investment than Vivoryon Therapeutics. However, BS Group is 1.63 times more volatile than Vivoryon Therapeutics NV. It trades about -0.09 of its potential returns per unit of risk. Vivoryon Therapeutics NV is currently generating about -0.53 per unit of risk. If you would invest 481.00 in BS Group SA on August 27, 2024 and sell it today you would lose (26.00) from holding BS Group SA or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BS Group SA vs. Vivoryon Therapeutics NV
Performance |
| Timeline |
| BS Group SA |
| Vivoryon Therapeutics |
BS Group and Vivoryon Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BS Group and Vivoryon Therapeutics
The main advantage of trading using opposite BS Group and Vivoryon Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BS Group position performs unexpectedly, Vivoryon Therapeutics 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 Vivoryon Therapeutics will offset losses from the drop in Vivoryon Therapeutics' long position.| BS Group vs. ForFarmers NV | BS Group vs. Sligro Food Group | BS Group vs. Amsterdam Commodities NV | BS Group vs. Brunel International NV |
| Vivoryon Therapeutics vs. Pharming Group NV | Vivoryon Therapeutics vs. Avantium Holding BV | Vivoryon Therapeutics vs. BS Group SA | Vivoryon Therapeutics vs. Vastned Retail NV |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |