Correlation Between Exel Composites and Biohit Oyj
Can any of the company-specific risk be diversified away by investing in both Exel Composites and Biohit Oyj 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 Exel Composites and Biohit Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exel Composites Oyj and Biohit Oyj B, you can compare the effects of market volatilities on Exel Composites and Biohit Oyj 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 Exel Composites with a short position of Biohit Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exel Composites and Biohit Oyj.
Diversification Opportunities for Exel Composites and Biohit Oyj
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exel and Biohit is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Exel Composites Oyj and Biohit Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biohit Oyj B and Exel Composites 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 Exel Composites Oyj are associated (or correlated) with Biohit Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biohit Oyj B has no effect on the direction of Exel Composites i.e., Exel Composites and Biohit Oyj go up and down completely randomly.
Pair Corralation between Exel Composites and Biohit Oyj
Assuming the 90 days trading horizon Exel Composites is expected to generate 8.21 times less return on investment than Biohit Oyj. In addition to that, Exel Composites is 1.4 times more volatile than Biohit Oyj B. It trades about 0.01 of its total potential returns per unit of risk. Biohit Oyj B is currently generating about 0.06 per unit of volatility. If you would invest 201.00 in Biohit Oyj B on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Biohit Oyj B or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exel Composites Oyj vs. Biohit Oyj B
Performance |
| Timeline |
| Exel Composites Oyj |
| Biohit Oyj B |
Exel Composites and Biohit Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exel Composites and Biohit Oyj
The main advantage of trading using opposite Exel Composites and Biohit Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exel Composites position performs unexpectedly, Biohit Oyj 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 Biohit Oyj will offset losses from the drop in Biohit Oyj's long position.| Exel Composites vs. SSH Communications Security | Exel Composites vs. Reka Industrial Oyj | Exel Composites vs. Alandsbanken Abp A | Exel Composites vs. Sotkamo Silver AB |
| Biohit Oyj vs. Bittium Oyj | Biohit Oyj vs. Dovre Group Plc | Biohit Oyj vs. Afarak Group Oyj | Biohit Oyj vs. Tecnotree Oyj |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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