Correlation Between Bioter SA and EL D

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

By analyzing existing cross correlation between Bioter SA and EL D Mouzakis, you can compare the effects of market volatilities on Bioter SA and EL D 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 EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioter SA and EL D.

Diversification Opportunities for Bioter SA and EL D

0.28

Correlation Coefficient

Bioter SA  EL D

Modest diversification

The 3 months correlation between Bioter and MOYZK is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bioter SA and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis 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 EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Bioter SA i.e., Bioter SA and EL D go up and down completely randomly.

Pair Corralation between Bioter SA and EL D

Assuming the 90 days trading horizon Bioter SA is expected to under-perform the EL D. In addition to that, Bioter SA is 1.88 times more volatile than EL D Mouzakis. It trades about -0.06 of its total potential returns per unit of risk. EL D Mouzakis is currently generating about -0.01 per unit of volatility. If you would invest  69.00  in EL D Mouzakis on October 20, 2024 and sell it today you would lose (2.00) from holding EL D Mouzakis or give up 2.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Bioter SA  vs.  EL D Mouzakis

Bioter SA

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

EL D Mouzakis

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bioter SA and EL D

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

The idea behind Bioter SA and EL D Mouzakis 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.