Correlation Between Bio Rad and 13d Activist

Can any of the company-specific risk be diversified away by investing in both Bio Rad and 13d Activist 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 13d Activist 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 13d Activist Fund, you can compare the effects of market volatilities on Bio Rad and 13d Activist 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 13d Activist. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and 13d Activist.

Diversification Opportunities for Bio Rad and 13d Activist

0.6

Correlation Coefficient

Bio Rad  13d Activist

Poor diversification

The 3 months correlation between Bio and 13d is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and 13d Activist Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 13d Activist 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 13d Activist. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 13d Activist has no effect on the direction of Bio Rad i.e., Bio Rad and 13d Activist go up and down completely randomly.

Pair Corralation between Bio Rad and 13d Activist

Considering the 90-day investment horizon Bio Rad is expected to generate 1.31 times less return on investment than 13d Activist. In addition to that, Bio Rad is 3.14 times more volatile than 13d Activist Fund. It trades about 0.03 of its total potential returns per unit of risk. 13d Activist Fund is currently generating about 0.13 per unit of volatility. If you would invest  1,893  in 13d Activist Fund on May 10, 2025 and sell it today you would earn a total of  153.00  from holding 13d Activist Fund or generate 8.08% return on investment over 90 days.

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

Bio Rad Laboratories  vs.  13d Activist Fund

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 weak forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in September 2025.

13d Activist

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in 13d Activist Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, 13d Activist may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bio Rad and 13d Activist

The main advantage of trading using opposite Bio Rad and 13d Activist positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, 13d Activist 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 13d Activist will offset losses from the drop in 13d Activist's long position.

The idea behind Bio Rad Laboratories and 13d Activist Fund 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.