Correlation Between Bioter SA and Elvalhalcor Hellenic

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

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

Diversification Opportunities for Bioter SA and Elvalhalcor Hellenic

-0.63

Correlation Coefficient

Bioter SA  Elvalhalcor Hellenic

Excellent diversification

The 3 months correlation between Bioter and Elvalhalcor is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bioter SA and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic and Bioter 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 Bioter SA are associated (or correlated) with Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Bioter SA i.e., Bioter SA and Elvalhalcor Hellenic go up and down completely randomly.

Pair Corralation between Bioter SA and Elvalhalcor Hellenic

Assuming the 90 days trading horizon Bioter SA is expected to under-perform the Elvalhalcor Hellenic. In addition to that, Bioter SA is 1.8 times more volatile than Elvalhalcor Hellenic Copper. It trades about -0.04 of its total potential returns per unit of risk. Elvalhalcor Hellenic Copper is currently generating about 0.1 per unit of volatility. If you would invest  193.00  in Elvalhalcor Hellenic Copper on December 1, 2024 and sell it today you would earn a total of  22.00  from holding Elvalhalcor Hellenic Copper or generate 11.4% return on investment over 90 days.

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

Bioter SA  vs.  Elvalhalcor Hellenic Copper

Bioter SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioter SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Elvalhalcor Hellenic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elvalhalcor Hellenic Copper are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Elvalhalcor Hellenic may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Bioter SA and Elvalhalcor Hellenic

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

The idea behind Bioter SA and Elvalhalcor Hellenic Copper 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.