Correlation Between Celyad SA and Biocartis Group
Can any of the company-specific risk be diversified away by investing in both Celyad SA and Biocartis Group 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 Celyad SA and Biocartis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Biocartis Group NV, you can compare the effects of market volatilities on Celyad SA and Biocartis Group 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 Celyad SA with a short position of Biocartis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Biocartis Group.
Diversification Opportunities for Celyad SA and Biocartis Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celyad and Biocartis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Biocartis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocartis Group NV and Celyad SA 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 Celyad SA are associated (or correlated) with Biocartis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocartis Group NV has no effect on the direction of Celyad SA i.e., Celyad SA and Biocartis Group go up and down completely randomly.
Pair Corralation between Celyad SA and Biocartis Group
Assuming the 90 days trading horizon Celyad SA is expected to generate 4.07 times more return on investment than Biocartis Group. However, Celyad SA is 4.07 times more volatile than Biocartis Group NV. It trades about 0.03 of its potential returns per unit of risk. Biocartis Group NV is currently generating about -0.06 per unit of risk. If you would invest 104.00 in Celyad SA on August 30, 2024 and sell it today you would lose (37.00) from holding Celyad SA or give up 35.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Celyad SA vs. Biocartis Group NV
Performance |
| Timeline |
| Celyad SA |
| Biocartis Group NV |
Celyad SA and Biocartis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Biocartis Group
The main advantage of trading using opposite Celyad SA and Biocartis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA position performs unexpectedly, Biocartis Group 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 Biocartis Group will offset losses from the drop in Biocartis Group's long position.| Celyad SA vs. Onward Medical NV | Celyad SA vs. Ion Beam Applications | Celyad SA vs. Keyware Technologies NV |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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