Correlation Between Biotage AB and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Biotage AB and NYSE Composite 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 Biotage AB and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotage AB and NYSE Composite, you can compare the effects of market volatilities on Biotage AB and NYSE Composite 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 Biotage AB with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and NYSE Composite.
Diversification Opportunities for Biotage AB and NYSE Composite
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biotage and NYSE is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Biotage AB 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 Biotage AB are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Biotage AB i.e., Biotage AB and NYSE Composite go up and down completely randomly.
Pair Corralation between Biotage AB and NYSE Composite
Assuming the 90 days horizon Biotage AB is expected to under-perform the NYSE Composite. In addition to that, Biotage AB is 6.52 times more volatile than NYSE Composite. It trades about -0.12 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.16 per unit of volatility. If you would invest 1,814,664 in NYSE Composite on February 3, 2024 and sell it today you would lose (44,759) from holding NYSE Composite or give up 2.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Biotage AB vs. NYSE Composite
Performance |
Timeline |
Biotage AB and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Biotage AB
Pair trading matchups for Biotage AB
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Biotage AB and NYSE Composite
The main advantage of trading using opposite Biotage AB and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Biotage AB vs. BurgerFi International LLC | Biotage AB vs. Canoo Holdings | Biotage AB vs. Occidental Petroleum | Biotage AB vs. Organon Co |
NYSE Composite vs. Amkor Technology | NYSE Composite vs. MACOM Technology Solutions | NYSE Composite vs. Weibo Corp | NYSE Composite vs. NETGEAR |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |