Correlation Between Corline Biomedical and BIMobject
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and BIMobject 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 Corline Biomedical and BIMobject into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and BIMobject AB, you can compare the effects of market volatilities on Corline Biomedical and BIMobject 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 Corline Biomedical with a short position of BIMobject. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and BIMobject.
Diversification Opportunities for Corline Biomedical and BIMobject
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corline and BIMobject is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and BIMobject AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIMobject AB and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with BIMobject. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIMobject AB has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and BIMobject go up and down completely randomly.
Pair Corralation between Corline Biomedical and BIMobject
Assuming the 90 days trading horizon Corline Biomedical AB is expected to under-perform the BIMobject. In addition to that, Corline Biomedical is 1.2 times more volatile than BIMobject AB. It trades about -0.02 of its total potential returns per unit of risk. BIMobject AB is currently generating about 0.07 per unit of volatility. If you would invest 391.00 in BIMobject AB on November 8, 2024 and sell it today you would earn a total of 203.00 from holding BIMobject AB or generate 51.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Corline Biomedical AB vs. BIMobject AB
Performance |
| Timeline |
| Corline Biomedical |
| BIMobject AB |
Corline Biomedical and BIMobject Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and BIMobject
The main advantage of trading using opposite Corline Biomedical and BIMobject positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, BIMobject 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 BIMobject will offset losses from the drop in BIMobject's long position.| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
| BIMobject vs. G5 Entertainment publ | BIMobject vs. Bambuser AB | BIMobject vs. Catena Media plc | BIMobject vs. Crunchfish 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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