Correlation Between Biomm SA and Bardella

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

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

Diversification Opportunities for Biomm SA and Bardella

0.16

Correlation Coefficient

Biomm SA  Bardella

Average diversification

The 3 months correlation between Biomm and Bardella is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Biomm SA and Bardella SA Indstrias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bardella SA Indstrias and Biomm SA 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 Biomm SA are associated (or correlated) with Bardella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bardella SA Indstrias has no effect on the direction of Biomm SA i.e., Biomm SA and Bardella go up and down completely randomly.

Pair Corralation between Biomm SA and Bardella

Assuming the 90 days trading horizon Biomm SA is expected to under-perform the Bardella. In addition to that, Biomm SA is 1.39 times more volatile than Bardella SA Indstrias. It trades about -0.13 of its total potential returns per unit of risk. Bardella SA Indstrias is currently generating about -0.11 per unit of volatility. If you would invest  940.00  in Bardella SA Indstrias on September 5, 2024 and sell it today you would lose (137.00) from holding Bardella SA Indstrias or give up 14.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Biomm SA  vs.  Bardella SA Indstrias

Biomm SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biomm SA 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.

Bardella SA Indstrias

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bardella SA Indstrias 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 Preferred 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.

Pair Trading with Biomm SA and Bardella

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

The idea behind Biomm SA and Bardella SA Indstrias 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.