Pair Correlation Between BioShares Biotechnology and Health Care

This module allows you to analyze existing cross correlation between BioShares Biotechnology Clinical Trials and Health Care Select Sector SPDR ETF. You can compare the effects of market volatilities on BioShares Biotechnology and Health Care 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 BioShares Biotechnology with a short position of Health Care. See also your portfolio center. Please also check ongoing floating volatility patterns of BioShares Biotechnology and Health Care.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 BioShares Biotechnology Clinic  vs   Health Care Select Sector SPDR
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, BioShares Biotechnology Clinical Trials is expected to generate 3.4 times more return on investment than Health Care. However, BioShares Biotechnology is 3.4 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.31 of its potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.69 per unit of risk. If you would invest  2,839  in BioShares Biotechnology Clinical Trials on December 22, 2017 and sell it today you would earn a total of  287  from holding BioShares Biotechnology Clinical Trials or generate 10.11% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BioShares Biotechnology and Health Care
0.84

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding BioShares Biotechnology Clinic and Health Care Select Sector SPDR in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Health Care Select and BioShares Biotechnology 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 BioShares Biotechnology Clinical Trials are associated (or correlated) with Health Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health Care Select has no effect on the direction of BioShares Biotechnology i.e. BioShares Biotechnology and Health Care go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

BioShares Biotechnology

  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BioShares Biotechnology Clinical Trials are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

Health Care Select

  
45 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Select Sector SPDR ETF are ranked lower than 45 (%) of all global equities and portfolios over the last 30 days.