Correlation Between BIMobject and Sedana Medical

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

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

Diversification Opportunities for BIMobject and Sedana Medical

-0.48

Correlation Coefficient

BIMobject  Sedana Medical

Very good diversification

The 3 months correlation between BIMobject and Sedana is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Sedana Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sedana Medical AB and BIMobject 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 BIMobject AB are associated (or correlated) with Sedana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sedana Medical AB has no effect on the direction of BIMobject i.e., BIMobject and Sedana Medical go up and down completely randomly.

Pair Corralation between BIMobject and Sedana Medical

Assuming the 90 days trading horizon BIMobject AB is expected to generate 0.73 times more return on investment than Sedana Medical. However, BIMobject AB is 1.36 times less risky than Sedana Medical. It trades about 0.04 of its potential returns per unit of risk. Sedana Medical AB is currently generating about 0.02 per unit of risk. If you would invest  300.00  in BIMobject AB on September 26, 2024 and sell it today you would earn a total of  150.00  from holding BIMobject AB or generate 50.0% return on investment over 90 days.

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

BIMobject AB  vs.  Sedana Medical AB

BIMobject AB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BIMobject AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, BIMobject may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Sedana Medical AB

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with BIMobject and Sedana Medical

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

The idea behind BIMobject AB and Sedana Medical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.