Correlation Between Bio Rad and Branded Legacy

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

Diversification Opportunities for Bio Rad and Branded Legacy

-0.55

Correlation Coefficient

Bio Rad  Branded Legacy

Excellent diversification

The 3 months correlation between Bio and Branded is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Branded Legacy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Branded Legacy 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 Branded Legacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Branded Legacy has no effect on the direction of Bio Rad i.e., Bio Rad and Branded Legacy go up and down completely randomly.

Pair Corralation between Bio Rad and Branded Legacy

Considering the 90-day investment horizon Bio Rad is expected to generate 21.18 times less return on investment than Branded Legacy. But when comparing it to its historical volatility, Bio Rad Laboratories is 12.56 times less risky than Branded Legacy. It trades about 0.08 of its potential returns per unit of risk. Branded Legacy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.03  in Branded Legacy on September 12, 2025 and sell it today you would earn a total of  0.01  from holding Branded Legacy or generate 33.33% return on investment over 90 days.

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

Bio Rad Laboratories  vs.  Branded Legacy

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 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Branded Legacy

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Branded Legacy are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Branded Legacy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bio Rad and Branded Legacy

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

The idea behind Bio Rad Laboratories and Branded Legacy 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.