Correlation Between Swiss Water and BioForce Nanosciences

Can any of the company-specific risk be diversified away by investing in both Swiss Water and BioForce Nanosciences 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 Swiss Water and BioForce Nanosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swiss Water Decaffeinated and BioForce Nanosciences Holdings, you can compare the effects of market volatilities on Swiss Water and BioForce Nanosciences 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 Swiss Water with a short position of BioForce Nanosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Water and BioForce Nanosciences.

Diversification Opportunities for Swiss Water and BioForce Nanosciences

0.28

Correlation Coefficient

Swiss Water  BioForce Nanosciences

Modest diversification

The 3 months correlation between Swiss and BioForce is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Water Decaffeinated and BioForce Nanosciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioForce Nanosciences and Swiss Water 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 Swiss Water Decaffeinated are associated (or correlated) with BioForce Nanosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioForce Nanosciences has no effect on the direction of Swiss Water i.e., Swiss Water and BioForce Nanosciences go up and down completely randomly.

Pair Corralation between Swiss Water and BioForce Nanosciences

Assuming the 90 days horizon Swiss Water Decaffeinated is expected to generate 6.13 times more return on investment than BioForce Nanosciences. However, Swiss Water is 6.13 times more volatile than BioForce Nanosciences Holdings. It trades about 0.08 of its potential returns per unit of risk. BioForce Nanosciences Holdings is currently generating about 0.04 per unit of risk. If you would invest  205.00  in Swiss Water Decaffeinated on September 6, 2025 and sell it today you would earn a total of  95.00  from holding Swiss Water Decaffeinated or generate 46.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	64.93%
Values	Daily Returns

Swiss Water Decaffeinated  vs.  BioForce Nanosciences Holdings

Swiss Water Decaffeinated

Risk-Adjusted Performance

Weakest

Over the last 90 days Swiss Water Decaffeinated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Swiss Water is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BioForce Nanosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioForce Nanosciences Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, BioForce Nanosciences demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swiss Water and BioForce Nanosciences

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

The idea behind Swiss Water Decaffeinated and BioForce Nanosciences Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.