Correlation Between Biztech Konsulting and Creotech Instruments
Can any of the company-specific risk be diversified away by investing in both Biztech Konsulting and Creotech Instruments 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 Biztech Konsulting and Creotech Instruments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biztech Konsulting SA and Creotech Instruments SA, you can compare the effects of market volatilities on Biztech Konsulting and Creotech Instruments 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 Biztech Konsulting with a short position of Creotech Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biztech Konsulting and Creotech Instruments.
Diversification Opportunities for Biztech Konsulting and Creotech Instruments
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biztech and Creotech is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Biztech Konsulting SA and Creotech Instruments SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creotech Instruments and Biztech Konsulting 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 Biztech Konsulting SA are associated (or correlated) with Creotech Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creotech Instruments has no effect on the direction of Biztech Konsulting i.e., Biztech Konsulting and Creotech Instruments go up and down completely randomly.
Pair Corralation between Biztech Konsulting and Creotech Instruments
Assuming the 90 days trading horizon Biztech Konsulting SA is expected to generate 1.55 times more return on investment than Creotech Instruments. However, Biztech Konsulting is 1.55 times more volatile than Creotech Instruments SA. It trades about 0.0 of its potential returns per unit of risk. Creotech Instruments SA is currently generating about -0.04 per unit of risk. If you would invest 22.00 in Biztech Konsulting SA on August 26, 2024 and sell it today you would lose (4.00) from holding Biztech Konsulting SA or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.07% |
| Values | Daily Returns |
Biztech Konsulting SA vs. Creotech Instruments SA
Performance |
| Timeline |
| Biztech Konsulting |
| Creotech Instruments |
Biztech Konsulting and Creotech Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biztech Konsulting and Creotech Instruments
The main advantage of trading using opposite Biztech Konsulting and Creotech Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biztech Konsulting position performs unexpectedly, Creotech Instruments 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 Creotech Instruments will offset losses from the drop in Creotech Instruments' long position.| Biztech Konsulting vs. Clean Carbon Energy | Biztech Konsulting vs. ADX | Biztech Konsulting vs. Agroliga Group PLC | Biztech Konsulting vs. Vee SA |
| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. Asseco South Eastern | Creotech Instruments vs. Movie Games SA |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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