Correlation Between AXichem AB and Bactiguard Holding
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By analyzing existing cross correlation between aXichem AB and Bactiguard Holding AB, you can compare the effects of market volatilities on AXichem AB and Bactiguard Holding 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 AXichem AB with a short position of Bactiguard Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXichem AB and Bactiguard Holding.
Diversification Opportunities for AXichem AB and Bactiguard Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXichem and Bactiguard is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding aXichem AB and Bactiguard Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiguard Holding and AXichem AB 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 aXichem AB are associated (or correlated) with Bactiguard Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiguard Holding has no effect on the direction of AXichem AB i.e., AXichem AB and Bactiguard Holding go up and down completely randomly.
Pair Corralation between AXichem AB and Bactiguard Holding
Assuming the 90 days trading horizon aXichem AB is expected to generate 2.36 times more return on investment than Bactiguard Holding. However, AXichem AB is 2.36 times more volatile than Bactiguard Holding AB. It trades about 0.03 of its potential returns per unit of risk. Bactiguard Holding AB is currently generating about -0.31 per unit of risk. If you would invest 126.00 in aXichem AB on September 10, 2024 and sell it today you would lose (3.00) from holding aXichem AB or give up 2.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
aXichem AB vs. Bactiguard Holding AB
Performance |
Timeline |
aXichem AB |
Bactiguard Holding |
AXichem AB and Bactiguard Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AXichem AB and Bactiguard Holding
The main advantage of trading using opposite AXichem AB and Bactiguard Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXichem AB position performs unexpectedly, Bactiguard Holding 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 Bactiguard Holding will offset losses from the drop in Bactiguard Holding's long position.AXichem AB vs. Enzymatica publ AB | AXichem AB vs. Bactiguard Holding AB | AXichem AB vs. Cantargia AB | AXichem AB vs. BIMobject AB |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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