Correlation Between Bio Rad and ASICS

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

Diversification Opportunities for Bio Rad and ASICS

0.34

Correlation Coefficient

Bio Rad  ASICS

Weak diversification

The 3 months correlation between Bio and ASICS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS 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 ASICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of Bio Rad i.e., Bio Rad and ASICS go up and down completely randomly.

Pair Corralation between Bio Rad and ASICS

Considering the 90-day investment horizon Bio Rad is expected to generate 3.1 times less return on investment than ASICS. In addition to that, Bio Rad is 1.07 times more volatile than ASICS. It trades about 0.03 of its total potential returns per unit of risk. ASICS is currently generating about 0.1 per unit of volatility. If you would invest  2,048  in ASICS on May 12, 2025 and sell it today you would earn a total of  333.00  from holding ASICS or generate 16.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Bio Rad Laboratories  vs.  ASICS

Bio Rad Laboratories

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Bio Rad is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

ASICS

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ASICS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, ASICS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bio Rad and ASICS

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

The idea behind Bio Rad Laboratories and ASICS 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.