Correlation Between ExpreS2ion Biotech and Indutrade
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Indutrade 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 ExpreS2ion Biotech and Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExpreS2ion Biotech Holding and Indutrade AB, you can compare the effects of market volatilities on ExpreS2ion Biotech and Indutrade 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 ExpreS2ion Biotech with a short position of Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Indutrade.
Diversification Opportunities for ExpreS2ion Biotech and Indutrade
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExpreS2ion and Indutrade is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB and ExpreS2ion Biotech 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 ExpreS2ion Biotech Holding are associated (or correlated) with Indutrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indutrade AB has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Indutrade go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Indutrade
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to under-perform the Indutrade. In addition to that, ExpreS2ion Biotech is 2.71 times more volatile than Indutrade AB. It trades about -0.09 of its total potential returns per unit of risk. Indutrade AB is currently generating about 0.01 per unit of volatility. If you would invest 23,100 in Indutrade AB on September 3, 2025 and sell it today you would earn a total of 140.00 from holding Indutrade AB or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Indutrade AB
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Indutrade AB |
ExpreS2ion Biotech and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Indutrade
The main advantage of trading using opposite ExpreS2ion Biotech and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Indutrade 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 Indutrade will offset losses from the drop in Indutrade's long position.| ExpreS2ion Biotech vs. Media and Games | ExpreS2ion Biotech vs. LL Lucky Games | ExpreS2ion Biotech vs. GiG Software PLC | ExpreS2ion Biotech vs. Lea Bank AB |
| Indutrade vs. Autoliv | Indutrade vs. Vitec Software Group | Indutrade vs. Absolent Group AB | Indutrade vs. USWE Sports 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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