Correlation Between GomSpace Group and Boule Diagnostics
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Boule Diagnostics 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 GomSpace Group and Boule Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GomSpace Group AB and Boule Diagnostics AB, you can compare the effects of market volatilities on GomSpace Group and Boule Diagnostics 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 GomSpace Group with a short position of Boule Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Boule Diagnostics.
Diversification Opportunities for GomSpace Group and Boule Diagnostics
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GomSpace and Boule is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Boule Diagnostics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boule Diagnostics and GomSpace Group 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 GomSpace Group AB are associated (or correlated) with Boule Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boule Diagnostics has no effect on the direction of GomSpace Group i.e., GomSpace Group and Boule Diagnostics go up and down completely randomly.
Pair Corralation between GomSpace Group and Boule Diagnostics
Assuming the 90 days trading horizon GomSpace Group AB is expected to generate 1.89 times more return on investment than Boule Diagnostics. However, GomSpace Group is 1.89 times more volatile than Boule Diagnostics AB. It trades about 0.03 of its potential returns per unit of risk. Boule Diagnostics AB is currently generating about -0.02 per unit of risk. If you would invest 468.00 in GomSpace Group AB on August 29, 2024 and sell it today you would lose (11.00) from holding GomSpace Group AB or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GomSpace Group AB vs. Boule Diagnostics AB
Performance |
| Timeline |
| GomSpace Group AB |
| Boule Diagnostics |
GomSpace Group and Boule Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Boule Diagnostics
The main advantage of trading using opposite GomSpace Group and Boule Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Boule Diagnostics 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 Boule Diagnostics will offset losses from the drop in Boule Diagnostics' long position.| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma AS |
| Boule Diagnostics vs. GomSpace Group AB | Boule Diagnostics vs. Hansa Biopharma AB | Boule Diagnostics vs. Zealand Pharma AS | Boule Diagnostics vs. BioInvent International 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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