Correlation Between Maha Energy and BioInvent International
Can any of the company-specific risk be diversified away by investing in both Maha Energy and BioInvent International 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 Maha Energy and BioInvent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maha Energy AB and BioInvent International AB, you can compare the effects of market volatilities on Maha Energy and BioInvent International 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 Maha Energy with a short position of BioInvent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maha Energy and BioInvent International.
Diversification Opportunities for Maha Energy and BioInvent International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maha and BioInvent is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Maha Energy AB and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and Maha Energy 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 Maha Energy AB are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of Maha Energy i.e., Maha Energy and BioInvent International go up and down completely randomly.
Pair Corralation between Maha Energy and BioInvent International
Assuming the 90 days trading horizon Maha Energy AB is expected to generate 1.28 times more return on investment than BioInvent International. However, Maha Energy is 1.28 times more volatile than BioInvent International AB. It trades about 0.05 of its potential returns per unit of risk. BioInvent International AB is currently generating about -0.51 per unit of risk. If you would invest 603.00 in Maha Energy AB on September 19, 2024 and sell it today you would earn a total of 13.00 from holding Maha Energy AB or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maha Energy AB vs. BioInvent International AB
Performance |
| Timeline |
| Maha Energy AB |
| BioInvent International |
Maha Energy and BioInvent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maha Energy and BioInvent International
The main advantage of trading using opposite Maha Energy and BioInvent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maha Energy position performs unexpectedly, BioInvent International 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 BioInvent International will offset losses from the drop in BioInvent International's long position.| Maha Energy vs. GomSpace Group AB | Maha Energy vs. SaltX Technology Holding | Maha Energy vs. Ambu AS | Maha Energy vs. Fingerprint Cards AB |
| BioInvent International vs. Mendus AB | BioInvent International vs. Cantargia AB | BioInvent International 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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