Correlation Between Bio Rad and ZKB Silver
Can any of the company-specific risk be diversified away by investing in both Bio Rad and ZKB Silver 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 Rad and ZKB Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Rad Laboratories and ZKB Silver ETF, you can compare the effects of market volatilities on Bio Rad and ZKB Silver 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 Rad with a short position of ZKB Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and ZKB Silver.
Diversification Opportunities for Bio Rad and ZKB Silver
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bio and ZKB is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and ZKB Silver ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKB Silver ETF and Bio Rad 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 Rad Laboratories are associated (or correlated) with ZKB Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKB Silver ETF has no effect on the direction of Bio Rad i.e., Bio Rad and ZKB Silver go up and down completely randomly.
Pair Corralation between Bio Rad and ZKB Silver
Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 2.12 times more return on investment than ZKB Silver. However, Bio Rad is 2.12 times more volatile than ZKB Silver ETF. It trades about 0.15 of its potential returns per unit of risk. ZKB Silver ETF is currently generating about 0.18 per unit of risk. If you would invest 22,761 in Bio Rad Laboratories on May 29, 2025 and sell it today you would earn a total of 6,899 from holding Bio Rad Laboratories or generate 30.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Bio Rad Laboratories vs. ZKB Silver ETF
Performance |
| Timeline |
| Bio Rad Laboratories |
| ZKB Silver ETF |
Bio Rad and ZKB Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Rad and ZKB Silver
The main advantage of trading using opposite Bio Rad and ZKB Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, ZKB Silver 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 ZKB Silver will offset losses from the drop in ZKB Silver's long position.| Bio Rad vs. Bruker | Bio Rad vs. The Cooper Companies, | Bio Rad vs. Charles River Laboratories | Bio Rad vs. Masimo |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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