Correlation Between Eurofins Scientific and Integragen
Can any of the company-specific risk be diversified away by investing in both Eurofins Scientific and Integragen 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 Eurofins Scientific and Integragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurofins Scientific SE and Integragen, you can compare the effects of market volatilities on Eurofins Scientific and Integragen 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 Eurofins Scientific with a short position of Integragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurofins Scientific and Integragen.
Diversification Opportunities for Eurofins Scientific and Integragen
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eurofins and Integragen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eurofins Scientific SE and Integragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integragen and Eurofins Scientific 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 Eurofins Scientific SE are associated (or correlated) with Integragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integragen has no effect on the direction of Eurofins Scientific i.e., Eurofins Scientific and Integragen go up and down completely randomly.
Pair Corralation between Eurofins Scientific and Integragen
Assuming the 90 days trading horizon Eurofins Scientific SE is expected to generate 0.34 times more return on investment than Integragen. However, Eurofins Scientific SE is 2.93 times less risky than Integragen. It trades about 0.02 of its potential returns per unit of risk. Integragen is currently generating about -0.16 per unit of risk. If you would invest 4,680 in Eurofins Scientific SE on August 25, 2024 and sell it today you would earn a total of 16.00 from holding Eurofins Scientific SE or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurofins Scientific SE vs. Integragen
Performance |
| Timeline |
| Eurofins Scientific |
| Integragen |
Eurofins Scientific and Integragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurofins Scientific and Integragen
The main advantage of trading using opposite Eurofins Scientific and Integragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurofins Scientific position performs unexpectedly, Integragen 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 Integragen will offset losses from the drop in Integragen's long position.| Eurofins Scientific vs. Sartorius Stedim Biotech | Eurofins Scientific vs. Teleperformance SE | Eurofins Scientific vs. Biomerieux SA | Eurofins Scientific vs. Dassault Systemes SE |
| Integragen vs. Biomerieux SA | Integragen vs. Eurofins Scientific SE | Integragen vs. Sartorius Stedim Biotech | Integragen vs. SEB SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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