Correlation Between BIOGEN and Stepan
Specify exactly 2 symbols:
By analyzing existing cross correlation between BIOGEN INC 52 and Stepan Company, you can compare the effects of market volatilities on BIOGEN and Stepan 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 BIOGEN with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIOGEN and Stepan.
Diversification Opportunities for BIOGEN and Stepan
Poor diversification
The 3 months correlation between BIOGEN and Stepan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BIOGEN INC 52 and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and BIOGEN 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 BIOGEN INC 52 are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of BIOGEN i.e., BIOGEN and Stepan go up and down completely randomly.
Pair Corralation between BIOGEN and Stepan
Assuming the 90 days trading horizon BIOGEN INC 52 is expected to generate 38.92 times more return on investment than Stepan. However, BIOGEN is 38.92 times more volatile than Stepan Company. It trades about 0.06 of its potential returns per unit of risk. Stepan Company is currently generating about -0.04 per unit of risk. If you would invest 10,174 in BIOGEN INC 52 on November 27, 2024 and sell it today you would lose (1,127) from holding BIOGEN INC 52 or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.71% |
| Values | Daily Returns |
BIOGEN INC 52 vs. Stepan Company
Performance |
| Timeline |
| BIOGEN INC 52 |
| Stepan Company |
BIOGEN and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIOGEN and Stepan
The main advantage of trading using opposite BIOGEN and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIOGEN position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| BIOGEN vs. Ardelyx | BIOGEN vs. Yuexiu Transport Infrastructure | BIOGEN vs. Titan America SA | BIOGEN vs. Acumen Pharmaceuticals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |