Correlation Between BICO Group and Anteris Technologies

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

By analyzing existing cross correlation between BICO Group AB and Anteris Technologies, you can compare the effects of market volatilities on BICO Group and Anteris Technologies 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 BICO Group with a short position of Anteris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BICO Group and Anteris Technologies.

Diversification Opportunities for BICO Group and Anteris Technologies

0.61

Correlation Coefficient

BICO Group  Anteris Technologies

Poor diversification

The 3 months correlation between BICO and Anteris is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding BICO Group AB and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and BICO 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 BICO Group AB are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of BICO Group i.e., BICO Group and Anteris Technologies go up and down completely randomly.

Pair Corralation between BICO Group and Anteris Technologies

Assuming the 90 days horizon BICO Group AB is expected to generate 0.65 times more return on investment than Anteris Technologies. However, BICO Group AB is 1.53 times less risky than Anteris Technologies. It trades about -0.06 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.06 per unit of risk. If you would invest  105.00  in BICO Group AB on September 3, 2024 and sell it today you would lose (17.00) from holding BICO Group AB or give up 16.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BICO Group AB  vs.  Anteris Technologies

BICO Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BICO Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with BICO Group and Anteris Technologies

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

The idea behind BICO Group AB and Anteris Technologies 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.