Correlation Between Hyloris Developmentsen and Biocartis Group

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

By analyzing existing cross correlation between Hyloris Developmentsen Sa and Biocartis Group NV, you can compare the effects of market volatilities on Hyloris Developmentsen and Biocartis 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 Hyloris Developmentsen with a short position of Biocartis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyloris Developmentsen and Biocartis Group.

Diversification Opportunities for Hyloris Developmentsen and Biocartis Group

0.0

Correlation Coefficient

Hyloris Developmentsen  Biocartis Group

Pay attention - limited upside

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

Pair Corralation between Hyloris Developmentsen and Biocartis Group

Assuming the 90 days trading horizon Hyloris Developmentsen Sa is expected to generate 7.27 times more return on investment than Biocartis Group. However, Hyloris Developmentsen is 7.27 times more volatile than Biocartis Group NV. It trades about 0.0 of its potential returns per unit of risk. Biocartis Group NV is currently generating about -0.07 per unit of risk. If you would invest  1,105  in Hyloris Developmentsen Sa on September 12, 2024 and sell it today you would lose (511.00) from holding Hyloris Developmentsen Sa or give up 46.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.44%
Values	Daily Returns

Hyloris Developmentsen Sa  vs.  Biocartis Group NV

Hyloris Developmentsen

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hyloris Developmentsen Sa are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak essential indicators, Hyloris Developmentsen reported solid returns over the last few months and may actually be approaching a breakup point.

Biocartis Group NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biocartis Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Biocartis Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Hyloris Developmentsen and Biocartis Group

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

The idea behind Hyloris Developmentsen Sa and Biocartis Group NV 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.