Correlation Between Bio Rad and Argo Group

Can any of the company-specific risk be diversified away by investing in both Bio Rad and Argo Group 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 Argo Group 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 Argo Group 65, you can compare the effects of market volatilities on Bio Rad and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Argo Group.

Diversification Opportunities for Bio Rad and Argo Group

0.51

Correlation Coefficient

Bio Rad  Argo Group

Very weak diversification

The 3 months correlation between Bio and Argo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Argo Group 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group 65 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group 65 has no effect on the direction of Bio Rad i.e., Bio Rad and Argo Group go up and down completely randomly.

Pair Corralation between Bio Rad and Argo Group

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 4.22 times more return on investment than Argo Group. However, Bio Rad is 4.22 times more volatile than Argo Group 65. It trades about 0.08 of its potential returns per unit of risk. Argo Group 65 is currently generating about 0.18 per unit of risk. If you would invest  24,017  in Bio Rad Laboratories on April 28, 2025 and sell it today you would earn a total of  2,402  from holding Bio Rad Laboratories or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bio Rad Laboratories  vs.  Argo Group 65

Bio Rad Laboratories

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Argo Group 65

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Group 65 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Argo Group is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Bio Rad and Argo Group

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

The idea behind Bio Rad Laboratories and Argo Group 65 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.