Correlation Between Applied DNA and Mainz Biomed
Can any of the company-specific risk be diversified away by investing in both Applied DNA and Mainz Biomed 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 Applied DNA and Mainz Biomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied DNA Sciences and Mainz Biomed BV, you can compare the effects of market volatilities on Applied DNA and Mainz Biomed 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 Applied DNA with a short position of Mainz Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied DNA and Mainz Biomed.
Diversification Opportunities for Applied DNA and Mainz Biomed
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Applied and Mainz is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Applied DNA Sciences and Mainz Biomed BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainz Biomed BV and Applied DNA 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 Applied DNA Sciences are associated (or correlated) with Mainz Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainz Biomed BV has no effect on the direction of Applied DNA i.e., Applied DNA and Mainz Biomed go up and down completely randomly.
Pair Corralation between Applied DNA and Mainz Biomed
Given the investment horizon of 90 days Applied DNA Sciences is expected to under-perform the Mainz Biomed. But the stock apears to be less risky and, when comparing its historical volatility, Applied DNA Sciences is 1.32 times less risky than Mainz Biomed. The stock trades about -0.22 of its potential returns per unit of risk. The Mainz Biomed BV is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 430.00 in Mainz Biomed BV on November 3, 2024 and sell it today you would earn a total of 179.00 from holding Mainz Biomed BV or generate 41.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied DNA Sciences vs. Mainz Biomed BV
Performance |
| Timeline |
| Applied DNA Sciences |
| Mainz Biomed BV |
Applied DNA and Mainz Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied DNA and Mainz Biomed
The main advantage of trading using opposite Applied DNA and Mainz Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied DNA position performs unexpectedly, Mainz Biomed 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 Mainz Biomed will offset losses from the drop in Mainz Biomed's long position.| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA vs. Burning Rock Biotech |
| Mainz Biomed vs. Applied DNA Sciences | Mainz Biomed vs. Neuronetics | Mainz Biomed vs. Prenetics Global | Mainz Biomed vs. Fonar |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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