Correlation Between Bonesupport Holding and Hansa Biopharma
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Hansa Biopharma 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 Bonesupport Holding and Hansa Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and Hansa Biopharma AB, you can compare the effects of market volatilities on Bonesupport Holding and Hansa Biopharma 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 Bonesupport Holding with a short position of Hansa Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Hansa Biopharma.
Diversification Opportunities for Bonesupport Holding and Hansa Biopharma
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bonesupport and Hansa is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Hansa Biopharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Biopharma AB and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with Hansa Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Biopharma AB has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Hansa Biopharma go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Hansa Biopharma
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to generate 0.54 times more return on investment than Hansa Biopharma. However, Bonesupport Holding AB is 1.85 times less risky than Hansa Biopharma. It trades about 0.13 of its potential returns per unit of risk. Hansa Biopharma AB is currently generating about 0.01 per unit of risk. If you would invest 33,800 in Bonesupport Holding AB on September 23, 2024 and sell it today you would earn a total of 4,400 from holding Bonesupport Holding AB or generate 13.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bonesupport Holding AB vs. Hansa Biopharma AB
Performance |
Timeline |
Bonesupport Holding |
Hansa Biopharma AB |
Bonesupport Holding and Hansa Biopharma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bonesupport Holding and Hansa Biopharma
The main advantage of trading using opposite Bonesupport Holding and Hansa Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Hansa Biopharma 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 Hansa Biopharma will offset losses from the drop in Hansa Biopharma's long position.Bonesupport Holding vs. BioInvent International AB | Bonesupport Holding vs. Orexo AB | Bonesupport Holding vs. Alligator Bioscience AB | Bonesupport Holding vs. Swedish Orphan Biovitrum |
Hansa Biopharma vs. BioInvent International AB | Hansa Biopharma vs. Alligator Bioscience AB | Hansa Biopharma vs. Moberg Pharma AB | Hansa Biopharma vs. Oncopeptides AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |