Correlation Between Anteris Technologies and BICO Group

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Can any of the company-specific risk be diversified away by investing in both Anteris Technologies and BICO Group 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 Anteris Technologies and BICO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anteris Technologies and BICO Group AB, you can compare the effects of market volatilities on Anteris Technologies and BICO Group 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 Anteris Technologies with a short position of BICO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anteris Technologies and BICO Group.

Diversification Opportunities for Anteris Technologies and BICO Group

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Anteris and BICO is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anteris Technologies and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB and Anteris Technologies 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 Anteris Technologies are associated (or correlated) with BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Anteris Technologies i.e., Anteris Technologies and BICO Group go up and down completely randomly.

Pair Corralation between Anteris Technologies and BICO Group

Assuming the 90 days horizon Anteris Technologies is expected to under-perform the BICO Group. In addition to that, Anteris Technologies is 1.12 times more volatile than BICO Group AB. It trades about -0.05 of its total potential returns per unit of risk. BICO Group AB is currently generating about -0.02 per unit of volatility. If you would invest  131.00  in BICO Group AB on October 5, 2024 and sell it today you would lose (41.00) from holding BICO Group AB or give up 31.3% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.88%
ValuesDaily Returns

Anteris Technologies  vs.  BICO Group AB

 Performance 
       Timeline  
Anteris Technologies 

Risk-Adjusted Performance

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Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
BICO Group AB 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in BICO Group AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, BICO Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Anteris Technologies and BICO Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anteris Technologies and BICO Group

The main advantage of trading using opposite Anteris Technologies and BICO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anteris Technologies position performs unexpectedly, BICO Group 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 BICO Group will offset losses from the drop in BICO Group's long position.
The idea behind Anteris Technologies and BICO Group AB 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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