Correlation Between Biocartis Group and Ion Beam

Can any of the company-specific risk be diversified away by investing in both Biocartis Group and Ion Beam 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 Biocartis Group and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Biocartis Group NV and Ion Beam Applications, you can compare the effects of market volatilities on Biocartis Group and Ion Beam 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 Biocartis Group with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocartis Group and Ion Beam.

Diversification Opportunities for Biocartis Group and Ion Beam

0.0

Correlation Coefficient

Biocartis Group  Ion Beam

Pay attention - limited upside

The 3 months correlation between Biocartis and Ion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biocartis Group NV and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Biocartis Group 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 Biocartis Group NV are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Biocartis Group i.e., Biocartis Group and Ion Beam go up and down completely randomly.

Pair Corralation between Biocartis Group and Ion Beam

If you would invest  1,346  in Ion Beam Applications on September 14, 2024 and sell it today you would earn a total of  2.00  from holding Ion Beam Applications or generate 0.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Biocartis Group NV  vs.  Ion Beam Applications

Biocartis Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biocartis Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Biocartis Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ion Beam Applications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ion Beam is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Biocartis Group and Ion Beam

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

The idea behind Biocartis Group NV and Ion Beam Applications 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.