Correlation Between Ultimovacs ASA and Biofish Holding
Can any of the company-specific risk be diversified away by investing in both Ultimovacs ASA and Biofish Holding 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 Ultimovacs ASA and Biofish Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimovacs ASA and Biofish Holding AS, you can compare the effects of market volatilities on Ultimovacs ASA and Biofish Holding 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 Ultimovacs ASA with a short position of Biofish Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimovacs ASA and Biofish Holding.
Diversification Opportunities for Ultimovacs ASA and Biofish Holding
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ultimovacs and Biofish is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ultimovacs ASA and Biofish Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofish Holding AS and Ultimovacs ASA 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 Ultimovacs ASA are associated (or correlated) with Biofish Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofish Holding AS has no effect on the direction of Ultimovacs ASA i.e., Ultimovacs ASA and Biofish Holding go up and down completely randomly.
Pair Corralation between Ultimovacs ASA and Biofish Holding
Assuming the 90 days trading horizon Ultimovacs ASA is expected to under-perform the Biofish Holding. In addition to that, Ultimovacs ASA is 1.39 times more volatile than Biofish Holding AS. It trades about -0.3 of its total potential returns per unit of risk. Biofish Holding AS is currently generating about 0.45 per unit of volatility. If you would invest 110.00 in Biofish Holding AS on October 21, 2024 and sell it today you would earn a total of 21.00 from holding Biofish Holding AS or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimovacs ASA vs. Biofish Holding AS
Performance |
| Timeline |
| Ultimovacs ASA |
| Biofish Holding AS |
Ultimovacs ASA and Biofish Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimovacs ASA and Biofish Holding
The main advantage of trading using opposite Ultimovacs ASA and Biofish Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimovacs ASA position performs unexpectedly, Biofish Holding 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 Biofish Holding will offset losses from the drop in Biofish Holding's long position.| Ultimovacs ASA vs. Bergenbio ASA | Ultimovacs ASA vs. Nykode Therapeutics ASA | Ultimovacs ASA vs. PCI Biotech Holding |
| Biofish Holding vs. Equinor ASA | Biofish Holding vs. DnB ASA | Biofish Holding vs. Aker BP ASA | Biofish Holding vs. Telenor ASA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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