Correlation Between Biogen and PFA Invest
Can any of the company-specific risk be diversified away by investing in both Biogen and PFA Invest 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 PFA Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biogen Inc and PFA Invest Balance, you can compare the effects of market volatilities on Biogen and PFA Invest 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 PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biogen and PFA Invest.
Diversification Opportunities for Biogen and PFA Invest
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biogen and PFA is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Biogen Inc and PFA Invest Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Balance 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 PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Balance has no effect on the direction of Biogen i.e., Biogen and PFA Invest go up and down completely randomly.
Pair Corralation between Biogen and PFA Invest
If you would invest 0.00 in PFA Invest Balance on January 20, 2024 and sell it today you would earn a total of 0.00 from holding PFA Invest Balance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Biogen Inc vs. PFA Invest Balance
Performance |
| Timeline |
| Biogen Inc |
| PFA Invest Balance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Biogen and PFA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biogen and PFA Invest
The main advantage of trading using opposite Biogen and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biogen position performs unexpectedly, PFA Invest 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 PFA Invest will offset losses from the drop in PFA Invest's long position.| Biogen vs. Bristol Myers Squibb | Biogen vs. AbbVie Inc | Biogen vs. Merck Company | Biogen vs. Gilead Sciences |
| PFA Invest vs. Groenlandsbanken AS | PFA Invest vs. Ringkjoebing Landbobank AS | PFA Invest vs. BankInvest Value Globale | PFA Invest vs. Scape Technologies AS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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