Correlation Between IHUNT TECHNOLOGY and Biofarm Bucure
Can any of the company-specific risk be diversified away by investing in both IHUNT TECHNOLOGY and Biofarm Bucure 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 IHUNT TECHNOLOGY and Biofarm Bucure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHUNT TECHNOLOGY IMPORT EXPORT and Biofarm Bucure, you can compare the effects of market volatilities on IHUNT TECHNOLOGY and Biofarm Bucure 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 IHUNT TECHNOLOGY with a short position of Biofarm Bucure. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHUNT TECHNOLOGY and Biofarm Bucure.
Diversification Opportunities for IHUNT TECHNOLOGY and Biofarm Bucure
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between IHUNT and Biofarm is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding IHUNT TECHNOLOGY IMPORT EXPORT and Biofarm Bucure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofarm Bucure and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY IMPORT EXPORT are associated (or correlated) with Biofarm Bucure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofarm Bucure has no effect on the direction of IHUNT TECHNOLOGY i.e., IHUNT TECHNOLOGY and Biofarm Bucure go up and down completely randomly.
Pair Corralation between IHUNT TECHNOLOGY and Biofarm Bucure
Assuming the 90 days trading horizon IHUNT TECHNOLOGY IMPORT EXPORT is expected to under-perform the Biofarm Bucure. In addition to that, IHUNT TECHNOLOGY is 1.67 times more volatile than Biofarm Bucure. It trades about -0.27 of its total potential returns per unit of risk. Biofarm Bucure is currently generating about -0.1 per unit of volatility. If you would invest 71.00 in Biofarm Bucure on December 10, 2024 and sell it today you would lose (2.00) from holding Biofarm Bucure or give up 2.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHUNT TECHNOLOGY IMPORT EXPORT vs. Biofarm Bucure
Performance |
| Timeline |
| IHUNT TECHNOLOGY IMPORT |
| Biofarm Bucure |
IHUNT TECHNOLOGY and Biofarm Bucure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHUNT TECHNOLOGY and Biofarm Bucure
The main advantage of trading using opposite IHUNT TECHNOLOGY and Biofarm Bucure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHUNT TECHNOLOGY position performs unexpectedly, Biofarm Bucure 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 Biofarm Bucure will offset losses from the drop in Biofarm Bucure's long position.| IHUNT TECHNOLOGY vs. Safetech Innovations SA | ||
| IHUNT TECHNOLOGY vs. TRANSILVANIA LEASING SI | ||
| IHUNT TECHNOLOGY vs. TRANSILVANIA INVESTMENTS ALLIANCE | ||
| IHUNT TECHNOLOGY vs. AROBS TRANSILVANIA SOFTWARE |
| Biofarm Bucure vs. IHUNT TECHNOLOGY IMPORT EXPORT | ||
| Biofarm Bucure vs. TRANSILVANIA LEASING SI | ||
| Biofarm Bucure vs. Evergent Investments SA | ||
| Biofarm Bucure vs. Safetech Innovations 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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