Correlation Between Nine Entertainment and Bio Gene
Can any of the company-specific risk be diversified away by investing in both Nine Entertainment and Bio Gene 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 Nine Entertainment and Bio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Entertainment Co and Bio Gene Technology, you can compare the effects of market volatilities on Nine Entertainment and Bio Gene 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 Nine Entertainment with a short position of Bio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Entertainment and Bio Gene.
Diversification Opportunities for Nine Entertainment and Bio Gene
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nine and Bio is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nine Entertainment Co and Bio Gene Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Gene Technology and Nine Entertainment 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 Nine Entertainment Co are associated (or correlated) with Bio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Gene Technology has no effect on the direction of Nine Entertainment i.e., Nine Entertainment and Bio Gene go up and down completely randomly.
Pair Corralation between Nine Entertainment and Bio Gene
Assuming the 90 days trading horizon Nine Entertainment is expected to generate 1.24 times less return on investment than Bio Gene. But when comparing it to its historical volatility, Nine Entertainment Co is 1.76 times less risky than Bio Gene. It trades about 0.08 of its potential returns per unit of risk. Bio Gene Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Bio Gene Technology on October 14, 2024 and sell it today you would earn a total of 0.10 from holding Bio Gene Technology or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Entertainment Co vs. Bio Gene Technology
Performance |
| Timeline |
| Nine Entertainment |
| Bio Gene Technology |
Nine Entertainment and Bio Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Entertainment and Bio Gene
The main advantage of trading using opposite Nine Entertainment and Bio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Entertainment position performs unexpectedly, Bio Gene 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 Bio Gene will offset losses from the drop in Bio Gene's long position.| Nine Entertainment vs. A1 Investments Resources | Nine Entertainment vs. Premier Investments | Nine Entertainment vs. Pinnacle Investment Management | Nine Entertainment vs. MFF Capital Investments |
| Bio Gene vs. Pioneer Credit | Bio Gene vs. Latitude Financial Services | Bio Gene vs. Nine Entertainment Co | Bio Gene vs. oOhMedia |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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