Correlation Between Oncopeptides and BioInvent International
Can any of the company-specific risk be diversified away by investing in both Oncopeptides 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 Oncopeptides and BioInvent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oncopeptides AB and BioInvent International AB, you can compare the effects of market volatilities on Oncopeptides 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 Oncopeptides with a short position of BioInvent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oncopeptides and BioInvent International.
Diversification Opportunities for Oncopeptides and BioInvent International
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oncopeptides and BioInvent is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Oncopeptides 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 Oncopeptides 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 Oncopeptides 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 Oncopeptides i.e., Oncopeptides and BioInvent International go up and down completely randomly.
Pair Corralation between Oncopeptides and BioInvent International
Assuming the 90 days trading horizon Oncopeptides AB is expected to under-perform the BioInvent International. But the stock apears to be less risky and, when comparing its historical volatility, Oncopeptides AB is 1.06 times less risky than BioInvent International. The stock trades about -0.12 of its potential returns per unit of risk. The BioInvent International AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,940 in BioInvent International AB on August 25, 2024 and sell it today you would earn a total of 515.00 from holding BioInvent International AB or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oncopeptides AB vs. BioInvent International AB
Performance |
| Timeline |
| Oncopeptides AB |
| BioInvent International |
Oncopeptides and BioInvent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oncopeptides and BioInvent International
The main advantage of trading using opposite Oncopeptides and BioInvent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncopeptides 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.| Oncopeptides vs. Hansa Biopharma AB | Oncopeptides vs. BioArctic AB | Oncopeptides vs. Sinch AB | Oncopeptides vs. Cantargia AB |
| BioInvent International vs. Hansa Biopharma AB | BioInvent International vs. Saniona AB | BioInvent International vs. Active Biotech AB | BioInvent International vs. Oncopeptides 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |