Correlation Between Biogen and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both Biogen and Investin Optimal 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 Biogen and Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biogen Inc and Investin Optimal VerdensIndex, you can compare the effects of market volatilities on Biogen and Investin Optimal 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 Biogen with a short position of Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biogen and Investin Optimal.
Diversification Opportunities for Biogen and Investin Optimal
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biogen and Investin is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Biogen Inc and Investin Optimal VerdensIndex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Ver and Biogen 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 Biogen Inc are associated (or correlated) with Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Ver has no effect on the direction of Biogen i.e., Biogen and Investin Optimal go up and down completely randomly.
Pair Corralation between Biogen and Investin Optimal
Given the investment horizon of 90 days Biogen Inc is expected to under-perform the Investin Optimal. In addition to that, Biogen is 5.41 times more volatile than Investin Optimal VerdensIndex. It trades about -0.12 of its total potential returns per unit of risk. Investin Optimal VerdensIndex is currently generating about 0.28 per unit of volatility. If you would invest 18,484 in Investin Optimal VerdensIndex on January 20, 2024 and sell it today you would earn a total of 2,058 from holding Investin Optimal VerdensIndex or generate 11.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Biogen Inc vs. Investin Optimal VerdensIndex
Performance |
| Timeline |
| Biogen Inc |
| Investin Optimal Ver |
Biogen and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biogen and Investin Optimal
The main advantage of trading using opposite Biogen and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biogen position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| Biogen vs. Bristol Myers Squibb | Biogen vs. AbbVie Inc | Biogen vs. Merck Company | Biogen vs. Gilead Sciences |
| Investin Optimal vs. Novo Nordisk AS | Investin Optimal vs. Nordea Bank Abp | Investin Optimal vs. DSV Panalpina AS | Investin Optimal vs. AP Mller |
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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |