Correlation Between Biofrontera and GBS

Can any of the company-specific risk be diversified away by investing in both Biofrontera and GBS 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 Biofrontera and GBS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Biofrontera and GBS Inc, you can compare the effects of market volatilities on Biofrontera and GBS 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 Biofrontera with a short position of GBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera and GBS.

Diversification Opportunities for Biofrontera and GBS

0.0

Correlation Coefficient

Biofrontera  GBS

Pay attention - limited upside

The 3 months correlation between Biofrontera and GBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera and GBS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBS Inc and Biofrontera 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 Biofrontera are associated (or correlated) with GBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBS Inc has no effect on the direction of Biofrontera i.e., Biofrontera and GBS go up and down completely randomly.

Pair Corralation between Biofrontera and GBS

If you would invest  102.00  in Biofrontera on August 6, 2025 and sell it today you would earn a total of  1.00  from holding Biofrontera or generate 0.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Biofrontera  vs.  GBS Inc

Biofrontera

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Biofrontera are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Biofrontera is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

GBS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days GBS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, GBS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Biofrontera and GBS

The main advantage of trading using opposite Biofrontera and GBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera position performs unexpectedly, GBS 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 GBS will offset losses from the drop in GBS's long position.

The idea behind Biofrontera and GBS Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.