Correlation Between Brain Scientific and BICO Group

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

By analyzing existing cross correlation between Brain Scientific and BICO Group AB, you can compare the effects of market volatilities on Brain Scientific and BICO Group 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 Brain Scientific with a short position of BICO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brain Scientific and BICO Group.

Diversification Opportunities for Brain Scientific and BICO Group

0.0

Correlation Coefficient

Brain Scientific  BICO Group

Pay attention - limited upside

The 3 months correlation between Brain and BICO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brain Scientific and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB and Brain Scientific 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 Brain Scientific are associated (or correlated) with BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Brain Scientific i.e., Brain Scientific and BICO Group go up and down completely randomly.

Pair Corralation between Brain Scientific and BICO Group

If you would invest  90.00  in BICO Group AB on December 28, 2024 and sell it today you would earn a total of  0.00  from holding BICO Group AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Brain Scientific  vs.  BICO Group AB

Brain Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brain Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Brain Scientific is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BICO Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BICO Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, BICO Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brain Scientific and BICO Group

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

The idea behind Brain Scientific and BICO Group AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.