Correlation Between BioPorto and Silkeborg

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

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

Diversification Opportunities for BioPorto and Silkeborg

-0.18

Correlation Coefficient

BioPorto  Silkeborg

Good diversification

The 3 months correlation between BioPorto and Silkeborg is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BioPorto and Silkeborg IF Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkeborg IF Invest and BioPorto 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 BioPorto are associated (or correlated) with Silkeborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkeborg IF Invest has no effect on the direction of BioPorto i.e., BioPorto and Silkeborg go up and down completely randomly.

Pair Corralation between BioPorto and Silkeborg

Assuming the 90 days trading horizon BioPorto is expected to under-perform the Silkeborg. In addition to that, BioPorto is 1.47 times more volatile than Silkeborg IF Invest. It trades about 0.0 of its total potential returns per unit of risk. Silkeborg IF Invest is currently generating about 0.09 per unit of volatility. If you would invest  1,720  in Silkeborg IF Invest on December 4, 2024 and sell it today you would earn a total of  2,720  from holding Silkeborg IF Invest or generate 158.14% return on investment over 90 days.

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

BioPorto  vs.  Silkeborg IF Invest

BioPorto

Risk-Adjusted Performance

Very Weak

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

Silkeborg IF Invest

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Silkeborg IF Invest are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Silkeborg displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioPorto and Silkeborg

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

The idea behind BioPorto and Silkeborg IF Invest 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.

Check out your portfolio center.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.