Correlation Between ExpreS2ion Biotech and Fluoguide
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Fluoguide 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 Fluoguide 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 Fluoguide AS, you can compare the effects of market volatilities on ExpreS2ion Biotech and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Fluoguide.
Diversification Opportunities for ExpreS2ion Biotech and Fluoguide
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ExpreS2ion and Fluoguide is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Fluoguide go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Fluoguide
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to generate 4.23 times more return on investment than Fluoguide. However, ExpreS2ion Biotech is 4.23 times more volatile than Fluoguide AS. It trades about 0.0 of its potential returns per unit of risk. Fluoguide AS is currently generating about -0.05 per unit of risk. If you would invest 16,681 in ExpreS2ion Biotech Holding on September 2, 2024 and sell it today you would lose (14,596) from holding ExpreS2ion Biotech Holding or give up 87.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Fluoguide AS
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Fluoguide AS |
ExpreS2ion Biotech and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Fluoguide
The main advantage of trading using opposite ExpreS2ion Biotech and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| ExpreS2ion Biotech vs. Hansa Biopharma AB | ExpreS2ion Biotech vs. Saniona AB | ExpreS2ion Biotech vs. Oncopeptides AB |
| Fluoguide vs. ExpreS2ion Biotech Holding | Fluoguide vs. Hansa Biopharma AB | Fluoguide vs. cBrain AS | Fluoguide vs. BioPorto |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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