Correlation Between Biotage AB and US Bancorp
Can any of the company-specific risk be diversified away by investing in both Biotage AB and US Bancorp 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 US Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotage AB and US Bancorp PERP, you can compare the effects of market volatilities on Biotage AB and US Bancorp 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 US Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotage AB and US Bancorp.
Diversification Opportunities for Biotage AB and US Bancorp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biotage and USB-PA is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and US Bancorp PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Bancorp PERP 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 US Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Bancorp PERP has no effect on the direction of Biotage AB i.e., Biotage AB and US Bancorp go up and down completely randomly.
Pair Corralation between Biotage AB and US Bancorp
If you would invest 86,738 in US Bancorp PERP on January 25, 2024 and sell it today you would earn a total of 1,262 from holding US Bancorp PERP or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biotage AB vs. US Bancorp PERP
Performance |
| Timeline |
| Biotage AB |
| US Bancorp PERP |
Biotage AB and US Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotage AB and US Bancorp
The main advantage of trading using opposite Biotage AB and US Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotage AB position performs unexpectedly, US Bancorp 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 US Bancorp will offset losses from the drop in US Bancorp's long position.| Biotage AB vs. Lilium Equity Warrants | Biotage AB vs. Blade Air Mobility | Biotage AB vs. HUMANA INC | Biotage AB vs. Aquagold International |
| US Bancorp vs. KeyCorp | US Bancorp vs. Regions Financial | US Bancorp vs. US Bancorp | US Bancorp vs. KeyCorp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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