Correlation Between Bio-Techne Corp and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Bio-Techne Corp and EIDESVIK OFFSHORE 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 Bio-Techne Corp and EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Techne Corp and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Bio-Techne Corp and EIDESVIK OFFSHORE 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 Bio-Techne Corp with a short position of EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio-Techne Corp and EIDESVIK OFFSHORE.
Diversification Opportunities for Bio-Techne Corp and EIDESVIK OFFSHORE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bio-Techne and EIDESVIK is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bio Techne Corp and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE and Bio-Techne Corp 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 Bio Techne Corp are associated (or correlated) with EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Bio-Techne Corp i.e., Bio-Techne Corp and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Bio-Techne Corp and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon Bio Techne Corp is expected to under-perform the EIDESVIK OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, Bio Techne Corp is 1.8 times less risky than EIDESVIK OFFSHORE. The stock trades about -0.06 of its potential returns per unit of risk. The EIDESVIK OFFSHORE NK is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 109.00 in EIDESVIK OFFSHORE NK on October 13, 2024 and sell it today you would earn a total of 2.00 from holding EIDESVIK OFFSHORE NK or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Bio Techne Corp vs. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Bio Techne Corp |
| EIDESVIK OFFSHORE |
Bio-Techne Corp and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio-Techne Corp and EIDESVIK OFFSHORE
The main advantage of trading using opposite Bio-Techne Corp and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio-Techne Corp position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Bio-Techne Corp vs. EIDESVIK OFFSHORE NK | Bio-Techne Corp vs. LPKF Laser Electronics | Bio-Techne Corp vs. STORE ELECTRONIC | Bio-Techne Corp vs. AOI Electronics Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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