Correlation Between Bio Rad and Ubs Small

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

Diversification Opportunities for Bio Rad and Ubs Small

0.8

Correlation Coefficient

Bio Rad  Ubs Small

Very poor diversification

The 3 months correlation between Bio and Ubs is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Ubs Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Small Cap 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 Ubs Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Small Cap has no effect on the direction of Bio Rad i.e., Bio Rad and Ubs Small go up and down completely randomly.

Pair Corralation between Bio Rad and Ubs Small

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 4.3 times more return on investment than Ubs Small. However, Bio Rad is 4.3 times more volatile than Ubs Small Cap. It trades about 0.08 of its potential returns per unit of risk. Ubs Small Cap is currently generating about 0.19 per unit of risk. If you would invest  24,132  in Bio Rad Laboratories on June 29, 2025 and sell it today you would earn a total of  3,004  from holding Bio Rad Laboratories or generate 12.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	46.03%
Values	Daily Returns

Bio Rad Laboratories  vs.  Ubs Small Cap

Bio Rad Laboratories

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

Ubs Small Cap

Risk-Adjusted Performance

Good

Over the last 90 days Ubs Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak fundamental indicators, Ubs Small may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Bio Rad and Ubs Small

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

The idea behind Bio Rad Laboratories and Ubs Small Cap 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.