Correlation Between Inficon Holding and BB Biotech
Can any of the company-specific risk be diversified away by investing in both Inficon Holding and BB 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 Inficon Holding and BB Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inficon Holding and BB Biotech AG, you can compare the effects of market volatilities on Inficon Holding and BB 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 Inficon Holding with a short position of BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inficon Holding and BB Biotech.
Diversification Opportunities for Inficon Holding and BB Biotech
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inficon and BION is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Inficon Holding and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG and Inficon Holding 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 Inficon Holding are associated (or correlated) with BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of Inficon Holding i.e., Inficon Holding and BB Biotech go up and down completely randomly.
Pair Corralation between Inficon Holding and BB Biotech
Assuming the 90 days trading horizon Inficon Holding is expected to under-perform the BB Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Inficon Holding is 1.15 times less risky than BB Biotech. The stock trades about -0.24 of its potential returns per unit of risk. The BB Biotech AG is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,640 in BB Biotech AG on August 29, 2024 and sell it today you would earn a total of 90.00 from holding BB Biotech AG or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inficon Holding vs. BB Biotech AG
Performance |
| Timeline |
| Inficon Holding |
| BB Biotech AG |
Inficon Holding and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inficon Holding and BB Biotech
The main advantage of trading using opposite Inficon Holding and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inficon Holding position performs unexpectedly, BB 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 BB Biotech will offset losses from the drop in BB Biotech's long position.| Inficon Holding vs. VAT Group AG | Inficon Holding vs. Comet Holding AG | Inficon Holding vs. Belimo Holding | Inficon Holding vs. Bachem Holding AG |
| BB Biotech vs. Swiss Life Holding | BB Biotech vs. Swiss Re AG | BB Biotech vs. Helvetia Holding AG | BB Biotech vs. Partners Group Holding |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |