Correlation Between BIMobject and Polygiene

Can any of the company-specific risk be diversified away by investing in both BIMobject and Polygiene 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 BIMobject and Polygiene into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BIMobject AB and Polygiene AB, you can compare the effects of market volatilities on BIMobject and Polygiene 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 BIMobject with a short position of Polygiene. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIMobject and Polygiene.

Diversification Opportunities for BIMobject and Polygiene

-0.34

Correlation Coefficient

BIMobject  Polygiene

Very good diversification

The 3 months correlation between BIMobject and Polygiene is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BIMobject AB and Polygiene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygiene AB and BIMobject 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 BIMobject AB are associated (or correlated) with Polygiene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygiene AB has no effect on the direction of BIMobject i.e., BIMobject and Polygiene go up and down completely randomly.

Pair Corralation between BIMobject and Polygiene

Assuming the 90 days trading horizon BIMobject AB is expected to under-perform the Polygiene. But the stock apears to be less risky and, when comparing its historical volatility, BIMobject AB is 1.28 times less risky than Polygiene. The stock trades about -0.09 of its potential returns per unit of risk. The Polygiene AB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  918.00  in Polygiene AB on April 24, 2025 and sell it today you would earn a total of  322.00  from holding Polygiene AB or generate 35.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BIMobject AB  vs.  Polygiene AB

BIMobject AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days BIMobject AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Polygiene AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Polygiene AB are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Polygiene unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BIMobject and Polygiene

The main advantage of trading using opposite BIMobject and Polygiene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIMobject position performs unexpectedly, Polygiene 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 Polygiene will offset losses from the drop in Polygiene's long position.

The idea behind BIMobject AB and Polygiene AB 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.