Correlation Between Bio Rad and Ingen Technologies
Can any of the company-specific risk be diversified away by investing in both Bio Rad and Ingen Technologies 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 Rad and Ingen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Rad Laboratories and Ingen Technologies, you can compare the effects of market volatilities on Bio Rad and Ingen Technologies 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 Rad with a short position of Ingen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Ingen Technologies.
Diversification Opportunities for Bio Rad and Ingen Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bio and Ingen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bio-Rad Laboratories and Ingen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingen Technologies and Bio Rad 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 Rad Laboratories are associated (or correlated) with Ingen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingen Technologies has no effect on the direction of Bio Rad i.e., Bio Rad and Ingen Technologies go up and down completely randomly.
Pair Corralation between Bio Rad and Ingen Technologies
Considering the 90-day investment horizon Bio Rad Laboratories is expected to under-perform the Ingen Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bio Rad Laboratories is 61.48 times less risky than Ingen Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Ingen Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Ingen Technologies on December 30, 2023 and sell it today you would lose (0.01) from holding Ingen Technologies or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Bio-Rad Laboratories vs. Ingen Technologies
Performance |
Timeline |
Bio-Rad Laboratories |
Ingen Technologies |
Bio Rad and Ingen Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bio Rad and Ingen Technologies
The main advantage of trading using opposite Bio Rad and Ingen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, Ingen Technologies 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 Ingen Technologies will offset losses from the drop in Ingen Technologies' long position.Bio Rad vs. Spectral AI | Bio Rad vs. Edwards Lifesciences Corp | Bio Rad vs. Medigus Ltd ADR | Bio Rad vs. Outset MedicalInc |
Ingen Technologies vs. Abbott Laboratories | Ingen Technologies vs. Stryker | Ingen Technologies vs. Medtronic PLC | Ingen Technologies vs. Boston Scientific Corp |
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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