Correlation Between Bio Rad and Fossil

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

Diversification Opportunities for Bio Rad and Fossil

0.85

Correlation Coefficient

Bio Rad  Fossil

Very poor diversification

The 3 months correlation between Bio and Fossil is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 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 Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Bio Rad i.e., Bio Rad and Fossil go up and down completely randomly.

Pair Corralation between Bio Rad and Fossil

Considering the 90-day investment horizon Bio Rad is expected to generate 5.11 times less return on investment than Fossil. But when comparing it to its historical volatility, Bio Rad Laboratories is 2.22 times less risky than Fossil. It trades about 0.08 of its potential returns per unit of risk. Fossil Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  148.00  in Fossil Group on June 30, 2025 and sell it today you would earn a total of  124.00  from holding Fossil Group or generate 83.78% return on investment over 90 days.

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

Bio Rad Laboratories  vs.  Fossil Group

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.

Fossil Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fossil Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Fossil disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bio Rad and Fossil

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

The idea behind Bio Rad Laboratories and Fossil Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.