Correlation Between Advanced Biomed and Ridgetech
Can any of the company-specific risk be diversified away by investing in both Advanced Biomed and Ridgetech 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 Advanced Biomed and Ridgetech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Biomed Common and Ridgetech, you can compare the effects of market volatilities on Advanced Biomed and Ridgetech 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 Advanced Biomed with a short position of Ridgetech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Biomed and Ridgetech.
Diversification Opportunities for Advanced Biomed and Ridgetech
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Ridgetech is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Biomed Common and Ridgetech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ridgetech and Advanced Biomed 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 Advanced Biomed Common are associated (or correlated) with Ridgetech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ridgetech has no effect on the direction of Advanced Biomed i.e., Advanced Biomed and Ridgetech go up and down completely randomly.
Pair Corralation between Advanced Biomed and Ridgetech
Given the investment horizon of 90 days Advanced Biomed Common is expected to under-perform the Ridgetech. But the stock apears to be less risky and, when comparing its historical volatility, Advanced Biomed Common is 2.41 times less risky than Ridgetech. The stock trades about -0.09 of its potential returns per unit of risk. The Ridgetech is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Ridgetech on October 7, 2025 and sell it today you would earn a total of 79.00 from holding Ridgetech or generate 39.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Biomed Common vs. Ridgetech
Performance |
| Timeline |
| Advanced Biomed Common |
| Ridgetech |
Advanced Biomed and Ridgetech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Biomed and Ridgetech
The main advantage of trading using opposite Advanced Biomed and Ridgetech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Biomed position performs unexpectedly, Ridgetech 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 Ridgetech will offset losses from the drop in Ridgetech's long position.| Advanced Biomed vs. BioNexus Gene Lab | Advanced Biomed vs. Trinity Biotech plc | Advanced Biomed vs. Ridgetech | Advanced Biomed vs. Aptorum Group Ltd |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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