Correlation Between Isofol Medical and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Isofol Medical and Bonesupport Holding 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 Isofol Medical and Bonesupport Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isofol Medical AB and Bonesupport Holding AB, you can compare the effects of market volatilities on Isofol Medical and Bonesupport Holding 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 Isofol Medical with a short position of Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isofol Medical and Bonesupport Holding.
Diversification Opportunities for Isofol Medical and Bonesupport Holding
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Isofol and Bonesupport is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Isofol Medical AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding and Isofol Medical 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 Isofol Medical AB are associated (or correlated) with Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Isofol Medical i.e., Isofol Medical and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Isofol Medical and Bonesupport Holding
Assuming the 90 days trading horizon Isofol Medical AB is expected to under-perform the Bonesupport Holding. In addition to that, Isofol Medical is 2.8 times more volatile than Bonesupport Holding AB. It trades about -0.16 of its total potential returns per unit of risk. Bonesupport Holding AB is currently generating about -0.04 per unit of volatility. If you would invest 36,020 in Bonesupport Holding AB on September 15, 2024 and sell it today you would lose (660.00) from holding Bonesupport Holding AB or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isofol Medical AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Isofol Medical AB |
| Bonesupport Holding |
Isofol Medical and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isofol Medical and Bonesupport Holding
The main advantage of trading using opposite Isofol Medical and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isofol Medical position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding's long position.| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical vs. Alligator Bioscience AB |
| Bonesupport Holding vs. Mendus AB | Bonesupport Holding vs. Cantargia AB | Bonesupport Holding vs. BioInvent International AB | Bonesupport Holding vs. Isofol Medical 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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