Correlation Between Xvivo Perfusion and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Xvivo Perfusion and Bonesupport 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 Xvivo Perfusion and Bonesupport Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xvivo Perfusion AB and Bonesupport Holding AB, you can compare the effects of market volatilities on Xvivo Perfusion and Bonesupport 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 Xvivo Perfusion with a short position of Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xvivo Perfusion and Bonesupport Holding.
Diversification Opportunities for Xvivo Perfusion and Bonesupport Holding
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xvivo and Bonesupport is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xvivo Perfusion AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding and Xvivo Perfusion 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 Xvivo Perfusion AB are associated (or correlated) with Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Xvivo Perfusion i.e., Xvivo Perfusion and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Xvivo Perfusion and Bonesupport Holding
Assuming the 90 days trading horizon Xvivo Perfusion AB is expected to generate 1.06 times more return on investment than Bonesupport Holding. However, Xvivo Perfusion is 1.06 times more volatile than Bonesupport Holding AB. It trades about 0.09 of its potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.09 per unit of risk. If you would invest 26,850 in Xvivo Perfusion AB on November 3, 2024 and sell it today you would earn a total of 19,750 from holding Xvivo Perfusion AB or generate 73.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xvivo Perfusion AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Xvivo Perfusion AB |
| Bonesupport Holding |
Xvivo Perfusion and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xvivo Perfusion and Bonesupport Holding
The main advantage of trading using opposite Xvivo Perfusion and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xvivo Perfusion position performs unexpectedly, Bonesupport 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding's long position.| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications AB |
| Bonesupport Holding vs. BioArctic AB | Bonesupport Holding vs. Xvivo Perfusion AB | Bonesupport Holding vs. Surgical Science Sweden |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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