Correlation Between Biofrontera Warrants and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both Biofrontera Warrants and Bone Biologics 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 Biofrontera Warrants and Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera Warrants and Bone Biologics Corp, you can compare the effects of market volatilities on Biofrontera Warrants and Bone Biologics 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 Biofrontera Warrants with a short position of Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera Warrants and Bone Biologics.
Diversification Opportunities for Biofrontera Warrants and Bone Biologics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biofrontera and Bone is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera Warrants and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp and Biofrontera Warrants 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 Biofrontera Warrants are associated (or correlated) with Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Biofrontera Warrants i.e., Biofrontera Warrants and Bone Biologics go up and down completely randomly.
Pair Corralation between Biofrontera Warrants and Bone Biologics
Assuming the 90 days horizon Biofrontera Warrants is expected to generate 11.13 times more return on investment than Bone Biologics. However, Biofrontera Warrants is 11.13 times more volatile than Bone Biologics Corp. It trades about 0.14 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about -0.03 per unit of risk. If you would invest 20.00 in Biofrontera Warrants on September 25, 2024 and sell it today you would lose (9.00) from holding Biofrontera Warrants or give up 45.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 64.79% |
Values | Daily Returns |
Biofrontera Warrants vs. Bone Biologics Corp
Performance |
Timeline |
Biofrontera Warrants |
Bone Biologics Corp |
Biofrontera Warrants and Bone Biologics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biofrontera Warrants and Bone Biologics
The main advantage of trading using opposite Biofrontera Warrants and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera Warrants position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.Biofrontera Warrants vs. Biofrontera | Biofrontera Warrants vs. Inspira Technologies Oxy | Biofrontera Warrants vs. Bluejay Diagnostics | Biofrontera Warrants vs. NRx Pharmaceuticals |
Bone Biologics vs. Cigna Corp | Bone Biologics vs. Definitive Healthcare Corp | Bone Biologics vs. Guardant Health | Bone Biologics vs. Laboratory of |
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 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.
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