Correlation Between Isofol Medical and Boule Diagnostics
Can any of the company-specific risk be diversified away by investing in both Isofol Medical and Boule Diagnostics 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 Boule Diagnostics 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 Boule Diagnostics AB, you can compare the effects of market volatilities on Isofol Medical and Boule Diagnostics 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 Boule Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isofol Medical and Boule Diagnostics.
Diversification Opportunities for Isofol Medical and Boule Diagnostics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Isofol and Boule is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Isofol Medical AB and Boule Diagnostics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boule Diagnostics 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 Boule Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boule Diagnostics has no effect on the direction of Isofol Medical i.e., Isofol Medical and Boule Diagnostics go up and down completely randomly.
Pair Corralation between Isofol Medical and Boule Diagnostics
Assuming the 90 days trading horizon Isofol Medical AB is expected to generate 2.67 times more return on investment than Boule Diagnostics. However, Isofol Medical is 2.67 times more volatile than Boule Diagnostics AB. It trades about 0.1 of its potential returns per unit of risk. Boule Diagnostics AB is currently generating about 0.0 per unit of risk. If you would invest 57.00 in Isofol Medical AB on September 14, 2024 and sell it today you would earn a total of 176.00 from holding Isofol Medical AB or generate 308.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isofol Medical AB vs. Boule Diagnostics AB
Performance |
| Timeline |
| Isofol Medical AB |
| Boule Diagnostics |
Isofol Medical and Boule Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isofol Medical and Boule Diagnostics
The main advantage of trading using opposite Isofol Medical and Boule Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isofol Medical position performs unexpectedly, Boule Diagnostics 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 Boule Diagnostics will offset losses from the drop in Boule Diagnostics' 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 |
| Boule Diagnostics vs. Mendus AB | Boule Diagnostics vs. Cantargia AB | Boule Diagnostics vs. BioInvent International AB | Boule Diagnostics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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