Correlation Between Straumann Holding and Bionano Genomics
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and Bionano Genomics 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 Straumann Holding and Bionano Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Bionano Genomics, you can compare the effects of market volatilities on Straumann Holding and Bionano Genomics 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 Straumann Holding with a short position of Bionano Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Bionano Genomics.
Diversification Opportunities for Straumann Holding and Bionano Genomics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Straumann and Bionano is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and Straumann Holding 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 Straumann Holding AG are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of Straumann Holding i.e., Straumann Holding and Bionano Genomics go up and down completely randomly.
Pair Corralation between Straumann Holding and Bionano Genomics
Assuming the 90 days horizon Straumann Holding AG is expected to generate 0.43 times more return on investment than Bionano Genomics. However, Straumann Holding AG is 2.32 times less risky than Bionano Genomics. It trades about 0.02 of its potential returns per unit of risk. Bionano Genomics is currently generating about -0.14 per unit of risk. If you would invest 1,207 in Straumann Holding AG on September 3, 2024 and sell it today you would earn a total of 87.00 from holding Straumann Holding AG or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Straumann Holding AG vs. Bionano Genomics
Performance |
| Timeline |
| Straumann Holding |
| Bionano Genomics |
Straumann Holding and Bionano Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and Bionano Genomics
The main advantage of trading using opposite Straumann Holding and Bionano Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, Bionano Genomics 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 Bionano Genomics will offset losses from the drop in Bionano Genomics' long position.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
| Bionano Genomics vs. Intuitive Surgical | Bionano Genomics vs. Innovative Eyewear | Bionano Genomics vs. Stereotaxis | Bionano Genomics vs. Nexgel Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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