Correlation Between Keyware Technologies and Biocartis Group

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

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

Diversification Opportunities for Keyware Technologies and Biocartis Group

0.0

Correlation Coefficient

Keyware Technologies  Biocartis Group

Pay attention - limited upside

The 3 months correlation between Keyware and Biocartis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keyware Technologies NV 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 Keyware Technologies 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 Keyware Technologies NV 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 Keyware Technologies i.e., Keyware Technologies and Biocartis Group go up and down completely randomly.

Pair Corralation between Keyware Technologies and Biocartis Group

If you would invest  29.00  in Biocartis Group NV on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Biocartis Group NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Keyware Technologies NV  vs.  Biocartis Group NV

Keyware Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Keyware Technologies NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Keyware Technologies may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keyware Technologies and Biocartis Group

The main advantage of trading using opposite Keyware Technologies and Biocartis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keyware Technologies 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 Keyware Technologies NV 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..