Correlation Between Coloplast and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both Coloplast and Bionano Genomics 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 Coloplast and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloplast AS and Bionano Genomics, you can compare the effects of market volatilities on Coloplast and Bionano Genomics 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 Coloplast with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Bionano Genomics.
Diversification Opportunities for Coloplast and Bionano Genomics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coloplast and Bionano is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and Coloplast 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 Coloplast AS are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Coloplast i.e., Coloplast and Bionano Genomics go up and down completely randomly.
Pair Corralation between Coloplast and Bionano Genomics
Assuming the 90 days horizon Coloplast AS is expected to generate 0.31 times more return on investment than Bionano Genomics. However, Coloplast AS is 3.24 times less risky than Bionano Genomics. It trades about 0.04 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.15 per unit of risk. If you would invest 11,953 in Coloplast AS on September 1, 2024 and sell it today you would earn a total of 904.00 from holding Coloplast AS or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coloplast AS vs. Bionano Genomics
Performance |
| Timeline |
| Coloplast AS |
| Bionano Genomics |
Coloplast and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Bionano Genomics
The main advantage of trading using opposite Coloplast and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast position performs unexpectedly, Bionano Genomics 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| Coloplast vs. Sysmex Corp | Coloplast vs. Straumann Holding AG | Coloplast vs. Essilor International SA | Coloplast vs. EssilorLuxottica Socit anonyme |
| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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