Correlation Between Biotage AB and Image Systems

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

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

Diversification Opportunities for Biotage AB and Image Systems

-0.15

Correlation Coefficient

Biotage AB  Image Systems

Good diversification

The 3 months correlation between Biotage and Image is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Biotage AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems AB and Biotage AB 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 Biotage AB are associated (or correlated) with Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of Biotage AB i.e., Biotage AB and Image Systems go up and down completely randomly.

Pair Corralation between Biotage AB and Image Systems

Assuming the 90 days trading horizon Biotage AB is expected to generate 1.98 times less return on investment than Image Systems. But when comparing it to its historical volatility, Biotage AB is 1.19 times less risky than Image Systems. It trades about 0.02 of its potential returns per unit of risk. Image Systems AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  135.00  in Image Systems AB on April 21, 2025 and sell it today you would earn a total of  59.00  from holding Image Systems AB or generate 43.7% return on investment over 90 days.

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

Biotage AB  vs.  Image Systems AB

Biotage AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Biotage AB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Biotage AB is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Image Systems AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Image Systems AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Biotage AB and Image Systems

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

The idea behind Biotage AB and Image Systems 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.