Correlation Between Biosynex and Encres Dubuit
Can any of the company-specific risk be diversified away by investing in both Biosynex and Encres Dubuit 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 Biosynex and Encres Dubuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biosynex and Encres Dubuit SA, you can compare the effects of market volatilities on Biosynex and Encres Dubuit 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 Biosynex with a short position of Encres Dubuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biosynex and Encres Dubuit.
Diversification Opportunities for Biosynex and Encres Dubuit
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biosynex and Encres is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Biosynex and Encres Dubuit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encres Dubuit SA and Biosynex 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 Biosynex are associated (or correlated) with Encres Dubuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encres Dubuit SA has no effect on the direction of Biosynex i.e., Biosynex and Encres Dubuit go up and down completely randomly.
Pair Corralation between Biosynex and Encres Dubuit
Assuming the 90 days trading horizon Biosynex is expected to under-perform the Encres Dubuit. In addition to that, Biosynex is 1.5 times more volatile than Encres Dubuit SA. It trades about -0.33 of its total potential returns per unit of risk. Encres Dubuit SA is currently generating about 0.13 per unit of volatility. If you would invest 218.00 in Encres Dubuit SA on September 25, 2024 and sell it today you would earn a total of 64.00 from holding Encres Dubuit SA or generate 29.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Biosynex vs. Encres Dubuit SA
Performance |
Timeline |
Biosynex |
Encres Dubuit SA |
Biosynex and Encres Dubuit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biosynex and Encres Dubuit
The main advantage of trading using opposite Biosynex and Encres Dubuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biosynex position performs unexpectedly, Encres Dubuit 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 Encres Dubuit will offset losses from the drop in Encres Dubuit's long position.Biosynex vs. Kalray SA | Biosynex vs. Eurobio Scientific SA | Biosynex vs. OSE Pharma SA | Biosynex vs. Quantum Genomics SA |
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Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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