Correlation Between Fluoguide and ExpreS2ion Biotech

Can any of the company-specific risk be diversified away by investing in both Fluoguide and ExpreS2ion Biotech 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 Fluoguide and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fluoguide AS and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Fluoguide and ExpreS2ion Biotech 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 Fluoguide with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluoguide and ExpreS2ion Biotech.

Diversification Opportunities for Fluoguide and ExpreS2ion Biotech

0.41

Correlation Coefficient

Fluoguide  ExpreS2ion Biotech

Very weak diversification

The 3 months correlation between Fluoguide and ExpreS2ion is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fluoguide AS and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech and Fluoguide 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 Fluoguide AS are associated (or correlated) with ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Fluoguide i.e., Fluoguide and ExpreS2ion Biotech go up and down completely randomly.

Pair Corralation between Fluoguide and ExpreS2ion Biotech

Assuming the 90 days trading horizon Fluoguide is expected to generate 6.49 times less return on investment than ExpreS2ion Biotech. But when comparing it to its historical volatility, Fluoguide AS is 2.65 times less risky than ExpreS2ion Biotech. It trades about 0.04 of its potential returns per unit of risk. ExpreS2ion Biotech Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,950  in ExpreS2ion Biotech Holding on April 24, 2025 and sell it today you would earn a total of  535.00  from holding ExpreS2ion Biotech Holding or generate 27.44% return on investment over 90 days.

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

Fluoguide AS  vs.  ExpreS2ion Biotech Holding

Fluoguide AS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fluoguide AS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fluoguide is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ExpreS2ion Biotech

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ExpreS2ion Biotech Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, ExpreS2ion Biotech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fluoguide and ExpreS2ion Biotech

The main advantage of trading using opposite Fluoguide and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluoguide position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.

The idea behind Fluoguide AS and ExpreS2ion Biotech Holding 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.