Correlation Between Aditxt and Biomx
Can any of the company-specific risk be diversified away by investing in both Aditxt and Biomx 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 Aditxt and Biomx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aditxt Inc and Biomx Inc, you can compare the effects of market volatilities on Aditxt and Biomx 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 Aditxt with a short position of Biomx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aditxt and Biomx.
Diversification Opportunities for Aditxt and Biomx
Poor diversification
The 3 months correlation between Aditxt and Biomx is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Aditxt Inc and Biomx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomx Inc and Aditxt 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 Aditxt Inc are associated (or correlated) with Biomx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomx Inc has no effect on the direction of Aditxt i.e., Aditxt and Biomx go up and down completely randomly.
Pair Corralation between Aditxt and Biomx
Given the investment horizon of 90 days Aditxt Inc is expected to generate 4.73 times more return on investment than Biomx. However, Aditxt is 4.73 times more volatile than Biomx Inc. It trades about 0.03 of its potential returns per unit of risk. Biomx Inc is currently generating about 0.0 per unit of risk. If you would invest 1,679 in Aditxt Inc on September 12, 2024 and sell it today you would lose (1,644) from holding Aditxt Inc or give up 97.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aditxt Inc vs. Biomx Inc
Performance |
| Timeline |
| Aditxt Inc |
| Biomx Inc |
Aditxt and Biomx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aditxt and Biomx
The main advantage of trading using opposite Aditxt and Biomx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aditxt position performs unexpectedly, Biomx 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 Biomx will offset losses from the drop in Biomx's long position.| Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
| Biomx vs. ZyVersa Therapeutics | Biomx vs. Immix Biopharma | Biomx vs. Cns Pharmaceuticals | Biomx vs. Sonnet Biotherapeutics Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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