This module allows you to analyze existing cross correlation between BioShares Biotechnology Products 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
BioShares Biotechnology Produc vs Health Care Select Sector SPDR
Considering 30-days investment horizon, BioShares Biotechnology Products is expected to generate 1.83 times more return on investment than Health Care. However, BioShares Biotechnology is 1.83 times more volatile than Health Care Select Sector SPDR ETF. It trades about 0.24 of its potential returns per unit of risk. Health Care Select Sector SPDR ETF is currently generating about 0.41 per unit of risk. If you would invest 3,980 in BioShares Biotechnology Products on December 17, 2017 and sell it today you would earn a total of 180.62 from holding BioShares Biotechnology Products or generate 4.54% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding BioShares Biotechnology Produc 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 Products 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.
Compared to the overall equity markets, risk-adjusted returns on investments in BioShares Biotechnology Products are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Health Care Select Sector SPDR ETF are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.