Correlation Between Sonova Holding and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both Sonova Holding and Bone Biologics 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 Sonova Holding and Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonova Holding AG and Bone Biologics Corp, you can compare the effects of market volatilities on Sonova Holding and Bone Biologics 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 Sonova Holding with a short position of Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonova Holding and Bone Biologics.
Diversification Opportunities for Sonova Holding and Bone Biologics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sonova and Bone is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sonova Holding AG and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp and Sonova 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 Sonova Holding AG are associated (or correlated) with Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Sonova Holding i.e., Sonova Holding and Bone Biologics go up and down completely randomly.
Pair Corralation between Sonova Holding and Bone Biologics
Assuming the 90 days horizon Sonova Holding AG is expected to generate 0.16 times more return on investment than Bone Biologics. However, Sonova Holding AG is 6.2 times less risky than Bone Biologics. It trades about 0.04 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about -0.03 per unit of risk. If you would invest 5,060 in Sonova Holding AG on August 30, 2024 and sell it today you would earn a total of 1,825 from holding Sonova Holding AG or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sonova Holding AG vs. Bone Biologics Corp
Performance |
| Timeline |
| Sonova Holding AG |
| Bone Biologics Corp |
Sonova Holding and Bone Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonova Holding and Bone Biologics
The main advantage of trading using opposite Sonova Holding and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonova Holding position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.| Sonova Holding vs. GN Store Nord | Sonova Holding vs. GN Store Nord | Sonova Holding vs. Bone Biologics Corp | Sonova Holding vs. Smith Nephew plc |
| Bone Biologics vs. Edwards Lifesciences Corp | Bone Biologics vs. Outset Medical | Bone Biologics vs. Venus Concept | Bone Biologics vs. DexCom 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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