Correlation Between CS Real and BB Biotech
Can any of the company-specific risk be diversified away by investing in both CS Real and BB Biotech 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 CS Real and BB Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS Real Estate and BB Biotech AG, you can compare the effects of market volatilities on CS Real and BB Biotech 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 CS Real with a short position of BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS Real and BB Biotech.
Diversification Opportunities for CS Real and BB Biotech
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSLP and BION is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CS Real Estate and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG and CS Real 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 CS Real Estate are associated (or correlated) with BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of CS Real i.e., CS Real and BB Biotech go up and down completely randomly.
Pair Corralation between CS Real and BB Biotech
Assuming the 90 days trading horizon CS Real is expected to generate 2.35 times less return on investment than BB Biotech. But when comparing it to its historical volatility, CS Real Estate is 1.95 times less risky than BB Biotech. It trades about 0.11 of its potential returns per unit of risk. BB Biotech AG is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,110 in BB Biotech AG on November 11, 2025 and sell it today you would earn a total of 545.00 from holding BB Biotech AG or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS Real Estate vs. BB Biotech AG
Performance |
| Timeline |
| CS Real Estate |
| BB Biotech AG |
CS Real and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS Real and BB Biotech
The main advantage of trading using opposite CS Real and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS Real position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| CS Real vs. Pictet CH CHF | CS Real vs. Procimmo Real Estate | CS Real vs. SPDR Dow Jones | CS Real vs. Autoneum Holding AG |
| BB Biotech vs. Idorsia | BB Biotech vs. Tecan Group AG | BB Biotech vs. Kuros Biosciences AG | BB Biotech vs. Basilea Pharmaceutica AG |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |