Correlation Between Biogen and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both Biogen and CEOTRONICS (CEKSG) 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 Biogen and CEOTRONICS (CEKSG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biogen Inc and CEOTRONICS, you can compare the effects of market volatilities on Biogen and CEOTRONICS (CEKSG) 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 Biogen with a short position of CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Biogen and CEOTRONICS (CEKSG).
Diversification Opportunities for Biogen and CEOTRONICS (CEKSG)
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biogen and CEOTRONICS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Biogen Inc and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) and Biogen 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 Biogen Inc are associated (or correlated) with CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of Biogen i.e., Biogen and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between Biogen and CEOTRONICS (CEKSG)
Assuming the 90 days horizon Biogen Inc is expected to under-perform the CEOTRONICS (CEKSG). But the stock apears to be less risky and, when comparing its historical volatility, Biogen Inc is 1.52 times less risky than CEOTRONICS (CEKSG). The stock trades about -0.08 of its potential returns per unit of risk. The CEOTRONICS is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 605.00 in CEOTRONICS on November 27, 2024 and sell it today you would earn a total of 95.00 from holding CEOTRONICS or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biogen Inc vs. CEOTRONICS
Performance |
| Timeline |
| Biogen Inc |
| CEOTRONICS (CEKSG) |
Biogen and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biogen and CEOTRONICS (CEKSG)
The main advantage of trading using opposite Biogen and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biogen position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| Biogen vs. UNIQA INSURANCE GR | Biogen vs. Sixt Leasing SE | Biogen vs. REVO INSURANCE SPA | Biogen vs. United Rentals |
| CEOTRONICS (CEKSG) vs. SALESFORCE INC CDR | CEOTRONICS (CEKSG) vs. Salesforce | CEOTRONICS (CEKSG) vs. ZhongAn Online P | CEOTRONICS (CEKSG) vs. CARSALESCOM |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |