Correlation Between Biofil Chemicals and New Economy
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By analyzing existing cross correlation between Biofil Chemicals Pharmaceuticals and New Economy Fund, you can compare the effects of market volatilities on Biofil Chemicals and New Economy 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 Biofil Chemicals with a short position of New Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofil Chemicals and New Economy.
Diversification Opportunities for Biofil Chemicals and New Economy
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biofil and New is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Biofil Chemicals Pharmaceutica and New Economy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Economy Fund and Biofil Chemicals 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 Biofil Chemicals Pharmaceuticals are associated (or correlated) with New Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Economy Fund has no effect on the direction of Biofil Chemicals i.e., Biofil Chemicals and New Economy go up and down completely randomly.
Pair Corralation between Biofil Chemicals and New Economy
Assuming the 90 days trading horizon Biofil Chemicals Pharmaceuticals is expected to generate 2.75 times more return on investment than New Economy. However, Biofil Chemicals is 2.75 times more volatile than New Economy Fund. It trades about 0.04 of its potential returns per unit of risk. New Economy Fund is currently generating about -0.11 per unit of risk. If you would invest 6,655 in Biofil Chemicals Pharmaceuticals on February 7, 2024 and sell it today you would earn a total of 95.00 from holding Biofil Chemicals Pharmaceuticals or generate 1.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 86.36% |
Values | Daily Returns |
Biofil Chemicals Pharmaceutica vs. New Economy Fund
Performance |
Timeline |
Biofil Chemicals Pha |
New Economy Fund |
Biofil Chemicals and New Economy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biofil Chemicals and New Economy
The main advantage of trading using opposite Biofil Chemicals and New Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofil Chemicals position performs unexpectedly, New Economy 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 New Economy will offset losses from the drop in New Economy's long position.Biofil Chemicals vs. Juniper Hotels | Biofil Chemicals vs. Samhi Hotels Limited | Biofil Chemicals vs. Cantabil Retail India | Biofil Chemicals vs. Cartrade Tech Limited |
New Economy vs. Income Fund Of | New Economy vs. New World Fund | New Economy vs. American Mutual Fund | New Economy vs. American Mutual Fund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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