Correlation Between Stayble Therapeutics and BioPorto
Can any of the company-specific risk be diversified away by investing in both Stayble Therapeutics and BioPorto 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 Stayble Therapeutics and BioPorto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stayble Therapeutics AB and BioPorto, you can compare the effects of market volatilities on Stayble Therapeutics and BioPorto 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 Stayble Therapeutics with a short position of BioPorto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stayble Therapeutics and BioPorto.
Diversification Opportunities for Stayble Therapeutics and BioPorto
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stayble and BioPorto is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stayble Therapeutics AB and BioPorto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioPorto and Stayble Therapeutics 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 Stayble Therapeutics AB are associated (or correlated) with BioPorto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioPorto has no effect on the direction of Stayble Therapeutics i.e., Stayble Therapeutics and BioPorto go up and down completely randomly.
Pair Corralation between Stayble Therapeutics and BioPorto
Assuming the 90 days trading horizon Stayble Therapeutics AB is expected to under-perform the BioPorto. In addition to that, Stayble Therapeutics is 1.77 times more volatile than BioPorto. It trades about -0.05 of its total potential returns per unit of risk. BioPorto is currently generating about -0.01 per unit of volatility. If you would invest 179.00 in BioPorto on September 13, 2024 and sell it today you would lose (7.00) from holding BioPorto or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stayble Therapeutics AB vs. BioPorto
Performance |
| Timeline |
| Stayble Therapeutics |
| BioPorto |
Stayble Therapeutics and BioPorto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stayble Therapeutics and BioPorto
The main advantage of trading using opposite Stayble Therapeutics and BioPorto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stayble Therapeutics position performs unexpectedly, BioPorto 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 BioPorto will offset losses from the drop in BioPorto's long position.| Stayble Therapeutics vs. Bavarian Nordic | Stayble Therapeutics vs. BioPorto | Stayble Therapeutics vs. Zaptec AS | Stayble Therapeutics vs. cBrain AS |
| BioPorto vs. Ambu AS | BioPorto vs. Bavarian Nordic | BioPorto vs. Zealand Pharma AS | BioPorto vs. Orphazyme AS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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