Correlation Between Technos SA and Bio Techne
Can any of the company-specific risk be diversified away by investing in both Technos SA and Bio Techne 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 Technos SA and Bio Techne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technos SA and Bio Techne, you can compare the effects of market volatilities on Technos SA and Bio Techne 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 Technos SA with a short position of Bio Techne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technos SA and Bio Techne.
Diversification Opportunities for Technos SA and Bio Techne
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Technos and Bio is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Technos SA and Bio Techne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Techne and Technos SA 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 Technos SA are associated (or correlated) with Bio Techne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Techne has no effect on the direction of Technos SA i.e., Technos SA and Bio Techne go up and down completely randomly.
Pair Corralation between Technos SA and Bio Techne
Assuming the 90 days trading horizon Technos SA is expected to generate 2.27 times less return on investment than Bio Techne. But when comparing it to its historical volatility, Technos SA is 3.05 times less risky than Bio Techne. It trades about 0.08 of its potential returns per unit of risk. Bio Techne is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Bio Techne on August 24, 2024 and sell it today you would earn a total of 339.00 from holding Bio Techne or generate 33.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.0% |
| Values | Daily Returns |
Technos SA vs. Bio Techne
Performance |
| Timeline |
| Technos SA |
| Bio Techne |
Technos SA and Bio Techne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technos SA and Bio Techne
The main advantage of trading using opposite Technos SA and Bio Techne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technos SA position performs unexpectedly, Bio Techne 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 Bio Techne will offset losses from the drop in Bio Techne's long position.| Technos SA vs. Palantir Technologies | Technos SA vs. Take Two Interactive Software | Technos SA vs. Lupatech SA | Technos SA vs. Paycom Software |
| Bio Techne vs. BIONTECH SE DRN | Bio Techne vs. Ascendis Pharma AS | Bio Techne vs. BTG Pactual Logstica | Bio Techne vs. Plano Plano Desenvolvimento |
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 Stocks Directory module to find actively traded stocks across global markets.
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