Correlation Between Mobilezone and BB Biotech
Can any of the company-specific risk be diversified away by investing in both Mobilezone 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 Mobilezone and BB Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between mobilezone ag and BB Biotech AG, you can compare the effects of market volatilities on Mobilezone 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 Mobilezone with a short position of BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobilezone and BB Biotech.
Diversification Opportunities for Mobilezone and BB Biotech
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mobilezone and BION is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding mobilezone ag 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 Mobilezone 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 mobilezone ag 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 Mobilezone i.e., Mobilezone and BB Biotech go up and down completely randomly.
Pair Corralation between Mobilezone and BB Biotech
Assuming the 90 days trading horizon Mobilezone is expected to generate 6.6 times less return on investment than BB Biotech. But when comparing it to its historical volatility, mobilezone ag is 2.02 times less risky than BB Biotech. It trades about 0.02 of its potential returns per unit of risk. BB Biotech AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,640 in BB Biotech AG on August 28, 2024 and sell it today you would earn a total of 75.00 from holding BB Biotech AG or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
mobilezone ag vs. BB Biotech AG
Performance |
| Timeline |
| mobilezone ag |
| BB Biotech AG |
Mobilezone and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobilezone and BB Biotech
The main advantage of trading using opposite Mobilezone and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobilezone 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.| Mobilezone vs. Procimmo Real Estate | Mobilezone vs. SPDR Dow Jones | Mobilezone vs. Baloise Holding AG | Mobilezone vs. Autoneum 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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