Correlation Between C Rad and Biotage AB
Can any of the company-specific risk be diversified away by investing in both C Rad and Biotage AB 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 C Rad and Biotage AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Rad AB and Biotage AB, you can compare the effects of market volatilities on C Rad and Biotage AB 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 C Rad with a short position of Biotage AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Rad and Biotage AB.
Diversification Opportunities for C Rad and Biotage AB
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CRAD-B and Biotage is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding C Rad AB and Biotage AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotage AB and C Rad 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 C Rad AB are associated (or correlated) with Biotage AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotage AB has no effect on the direction of C Rad i.e., C Rad and Biotage AB go up and down completely randomly.
Pair Corralation between C Rad and Biotage AB
Assuming the 90 days trading horizon C Rad AB is expected to generate 1.0 times more return on investment than Biotage AB. However, C Rad is 1.0 times more volatile than Biotage AB. It trades about 0.07 of its potential returns per unit of risk. Biotage AB is currently generating about -0.16 per unit of risk. If you would invest 2,950 in C Rad AB on September 3, 2024 and sell it today you would earn a total of 75.00 from holding C Rad AB or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Rad AB vs. Biotage AB
Performance |
| Timeline |
| C Rad AB |
| Biotage AB |
C Rad and Biotage AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Rad and Biotage AB
The main advantage of trading using opposite C Rad and Biotage AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Rad position performs unexpectedly, Biotage AB 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 Biotage AB will offset losses from the drop in Biotage AB's long position.| C Rad vs. CellaVision AB | C Rad vs. Biotage AB | C Rad vs. Boule Diagnostics AB | C Rad vs. RaySearch Laboratories AB |
| Biotage AB vs. BioInvent International AB | Biotage AB vs. Alligator Bioscience AB | Biotage AB vs. Swedish Orphan Biovitrum | Biotage AB vs. Anoto Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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