Correlation Between Infant Bacterial and ExpreS2ion Biotech
Can any of the company-specific risk be diversified away by investing in both Infant Bacterial and ExpreS2ion Biotech 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 Infant Bacterial and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infant Bacterial Therapeutics and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Infant Bacterial and ExpreS2ion Biotech 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 Infant Bacterial with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infant Bacterial and ExpreS2ion Biotech.
Diversification Opportunities for Infant Bacterial and ExpreS2ion Biotech
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infant and ExpreS2ion is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Infant Bacterial Therapeutics and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech and Infant Bacterial 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 Infant Bacterial Therapeutics are associated (or correlated) with ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Infant Bacterial i.e., Infant Bacterial and ExpreS2ion Biotech go up and down completely randomly.
Pair Corralation between Infant Bacterial and ExpreS2ion Biotech
Assuming the 90 days trading horizon Infant Bacterial Therapeutics is expected to generate 0.41 times more return on investment than ExpreS2ion Biotech. However, Infant Bacterial Therapeutics is 2.43 times less risky than ExpreS2ion Biotech. It trades about 0.02 of its potential returns per unit of risk. ExpreS2ion Biotech Holding is currently generating about 0.01 per unit of risk. If you would invest 4,975 in Infant Bacterial Therapeutics on November 29, 2024 and sell it today you would lose (975.00) from holding Infant Bacterial Therapeutics or give up 19.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Infant Bacterial Therapeutics vs. ExpreS2ion Biotech Holding
Performance |
| Timeline |
| Infant Bacterial |
| ExpreS2ion Biotech |
Infant Bacterial and ExpreS2ion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infant Bacterial and ExpreS2ion Biotech
The main advantage of trading using opposite Infant Bacterial and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infant Bacterial position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.| Infant Bacterial vs. BioGaia AB | Infant Bacterial vs. Cantargia AB | Infant Bacterial vs. XSpray Pharma AB | Infant Bacterial vs. Immunovia publ AB |
| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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