Correlation Between Link Reservations and Biofrontera
Can any of the company-specific risk be diversified away by investing in both Link Reservations and Biofrontera 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 Link Reservations and Biofrontera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Reservations and Biofrontera, you can compare the effects of market volatilities on Link Reservations and Biofrontera 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 Link Reservations with a short position of Biofrontera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Reservations and Biofrontera.
Diversification Opportunities for Link Reservations and Biofrontera
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Link and Biofrontera is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Link Reservations and Biofrontera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofrontera and Link Reservations 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 Link Reservations are associated (or correlated) with Biofrontera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofrontera has no effect on the direction of Link Reservations i.e., Link Reservations and Biofrontera go up and down completely randomly.
Pair Corralation between Link Reservations and Biofrontera
If you would invest 101.00 in Biofrontera on October 25, 2024 and sell it today you would earn a total of 1.00 from holding Biofrontera or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Reservations vs. Biofrontera
Performance |
| Timeline |
| Link Reservations |
| Biofrontera |
Link Reservations and Biofrontera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Reservations and Biofrontera
The main advantage of trading using opposite Link Reservations and Biofrontera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Reservations position performs unexpectedly, Biofrontera 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 Biofrontera will offset losses from the drop in Biofrontera's long position.| Link Reservations vs. Virtual Medical International | Link Reservations vs. Anything Tech Media | Link Reservations vs. Global Hemp Group | Link Reservations vs. Cannabis Suisse Corp |
| Biofrontera vs. Shuttle Pharmaceuticals | Biofrontera vs. Akanda Corp | Biofrontera vs. China Pharma Holdings | Biofrontera vs. Sunshine Biopharma Warrant |
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 Stocks Directory module to find actively traded stocks across global markets.
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