Correlation Between Biotage AB and Target

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Biotage AB and Target 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 Biotage AB and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotage AB and Target, you can compare the effects of market volatilities on Biotage AB and Target 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 Biotage AB with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and Target.

Diversification Opportunities for Biotage AB and Target

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Biotage and Target is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Biotage AB 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 Biotage AB are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Biotage AB i.e., Biotage AB and Target go up and down completely randomly.

Pair Corralation between Biotage AB and Target

Assuming the 90 days horizon Biotage AB is expected to generate 1.38 times more return on investment than Target. However, Biotage AB is 1.38 times more volatile than Target. It trades about 0.02 of its potential returns per unit of risk. Target is currently generating about 0.0 per unit of risk. If you would invest  1,495  in Biotage AB on December 30, 2023 and sell it today you would earn a total of  192.00  from holding Biotage AB or generate 12.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Biotage AB  vs.  Target

 Performance 
       Timeline  
Biotage AB 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Biotage AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Biotage AB reported solid returns over the last few months and may actually be approaching a breakup point.
Target 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Target are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Target unveiled solid returns over the last few months and may actually be approaching a breakup point.

Biotage AB and Target Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Biotage AB and Target

The main advantage of trading using opposite Biotage AB and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.
The idea behind Biotage AB and Target 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.
Check out your portfolio center.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Stocks Directory
Find actively traded stocks across global markets
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Commodity Directory
Find actively traded commodities issued by global exchanges