Correlation Between ExpreS2ion Biotech and BioInvent International
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and BioInvent International 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 ExpreS2ion Biotech and BioInvent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExpreS2ion Biotech Holding and BioInvent International AB, you can compare the effects of market volatilities on ExpreS2ion Biotech and BioInvent International 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 ExpreS2ion Biotech with a short position of BioInvent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and BioInvent International.
Diversification Opportunities for ExpreS2ion Biotech and BioInvent International
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExpreS2ion and BioInvent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and ExpreS2ion Biotech 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 ExpreS2ion Biotech Holding are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and BioInvent International go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and BioInvent International
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to generate 5.07 times more return on investment than BioInvent International. However, ExpreS2ion Biotech is 5.07 times more volatile than BioInvent International AB. It trades about 0.05 of its potential returns per unit of risk. BioInvent International AB is currently generating about -0.51 per unit of risk. If you would invest 2,145 in ExpreS2ion Biotech Holding on September 19, 2024 and sell it today you would earn a total of 15.00 from holding ExpreS2ion Biotech Holding or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. BioInvent International AB
Performance |
| Timeline |
| ExpreS2ion Biotech |
| BioInvent International |
ExpreS2ion Biotech and BioInvent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and BioInvent International
The main advantage of trading using opposite ExpreS2ion Biotech and BioInvent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, BioInvent International 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 BioInvent International will offset losses from the drop in BioInvent International's long position.| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
| BioInvent International vs. Mendus AB | BioInvent International vs. Cantargia AB | BioInvent International vs. Isofol Medical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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