Correlation Between BICO Group and OssDsign

Can any of the company-specific risk be diversified away by investing in both BICO Group and OssDsign 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 OssDsign 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 OssDsign AB, you can compare the effects of market volatilities on BICO Group and OssDsign 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 OssDsign. Check out your portfolio center. Please also check ongoing floating volatility patterns of BICO Group and OssDsign.

Diversification Opportunities for BICO Group and OssDsign

-0.83

Correlation Coefficient

BICO Group  OssDsign

Pay attention - limited upside

The 3 months correlation between BICO and OssDsign is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding BICO Group AB and OssDsign AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OssDsign AB 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 OssDsign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OssDsign AB has no effect on the direction of BICO Group i.e., BICO Group and OssDsign go up and down completely randomly.

Pair Corralation between BICO Group and OssDsign

Assuming the 90 days trading horizon BICO Group AB is expected to under-perform the OssDsign. In addition to that, BICO Group is 3.21 times more volatile than OssDsign AB. It trades about -0.06 of its total potential returns per unit of risk. OssDsign AB is currently generating about 0.52 per unit of volatility. If you would invest  805.00  in OssDsign AB on September 23, 2024 and sell it today you would earn a total of  190.00  from holding OssDsign AB or generate 23.6% return on investment over 90 days.

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

BICO Group AB  vs.  OssDsign AB

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 comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

OssDsign AB

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in OssDsign AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, OssDsign unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BICO Group and OssDsign

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

The idea behind BICO Group AB and OssDsign 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.