Correlation Between Bio Path and Hugo Boss

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

Diversification Opportunities for Bio Path and Hugo Boss

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bio and Hugo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bio Path Holdings and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Bio Path 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 Bio Path Holdings are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Bio Path i.e., Bio Path and Hugo Boss go up and down completely randomly.

Pair Corralation between Bio Path and Hugo Boss

If you would invest (100.00) in Hugo Boss AG on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Hugo Boss AG or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Bio Path Holdings  vs.  Hugo Boss AG

 Performance 
       Timeline  
Bio Path Holdings 

Risk-Adjusted Performance

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Over the last 90 days Bio Path Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Hugo Boss AG 

Risk-Adjusted Performance

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High
Very Weak
Over the last 90 days Hugo Boss AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hugo Boss is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bio Path and Hugo Boss Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bio Path and Hugo Boss

The main advantage of trading using opposite Bio Path and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Path position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.
The idea behind Bio Path Holdings and Hugo Boss AG 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.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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