Correlation Between USU Software and Biogen

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

By analyzing existing cross correlation between USU Software AG and Biogen Inc, you can compare the effects of market volatilities on USU Software and Biogen 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 USU Software with a short position of Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of USU Software and Biogen.

Diversification Opportunities for USU Software and Biogen

0.0

Correlation Coefficient

USU Software  Biogen

Pay attention - limited upside

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

Pair Corralation between USU Software and Biogen

If you would invest (100.00) in USU Software AG on October 4, 2024 and sell it today you would earn a total of  100.00  from holding USU Software AG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

USU Software AG  vs.  Biogen Inc

USU Software AG

Risk-Adjusted Performance

0 of 100

Insignificant

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

Biogen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with USU Software and Biogen

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

The idea behind USU Software AG and Biogen Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.