Correlation Between Bonesupport Holding and Redsense Medical
Can any of the company-specific risk be diversified away by investing in both Bonesupport Holding and Redsense Medical 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 Bonesupport Holding and Redsense Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonesupport Holding AB and Redsense Medical AB, you can compare the effects of market volatilities on Bonesupport Holding and Redsense Medical 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 Bonesupport Holding with a short position of Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonesupport Holding and Redsense Medical.
Diversification Opportunities for Bonesupport Holding and Redsense Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bonesupport and Redsense is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bonesupport Holding AB and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical and Bonesupport Holding 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 Bonesupport Holding AB are associated (or correlated) with Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Bonesupport Holding i.e., Bonesupport Holding and Redsense Medical go up and down completely randomly.
Pair Corralation between Bonesupport Holding and Redsense Medical
Assuming the 90 days trading horizon Bonesupport Holding AB is expected to under-perform the Redsense Medical. But the stock apears to be less risky and, when comparing its historical volatility, Bonesupport Holding AB is 1.35 times less risky than Redsense Medical. The stock trades about -0.32 of its potential returns per unit of risk. The Redsense Medical AB is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 490.00 in Redsense Medical AB on September 5, 2025 and sell it today you would lose (122.00) from holding Redsense Medical AB or give up 24.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonesupport Holding AB vs. Redsense Medical AB
Performance |
| Timeline |
| Bonesupport Holding |
| Redsense Medical |
Bonesupport Holding and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonesupport Holding and Redsense Medical
The main advantage of trading using opposite Bonesupport Holding and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonesupport Holding position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical's long position.| Bonesupport Holding vs. Invisio Communications AB | Bonesupport Holding vs. COOR Service Management | Bonesupport Holding vs. High Coast Distillery | Bonesupport Holding vs. Havsfrun Investment AB |
| Redsense Medical vs. Neola Medical AB | Redsense Medical vs. Lundin Mining | Redsense Medical vs. JLT Mobile Computers | Redsense Medical vs. Flowscape Technology AB |
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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