Correlation Between Aurora Spine and Biomerica
Can any of the company-specific risk be diversified away by investing in both Aurora Spine and Biomerica 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 Aurora Spine and Biomerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Spine and Biomerica, you can compare the effects of market volatilities on Aurora Spine and Biomerica 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 Aurora Spine with a short position of Biomerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Spine and Biomerica.
Diversification Opportunities for Aurora Spine and Biomerica
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aurora and Biomerica is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Spine and Biomerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerica and Aurora Spine 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 Aurora Spine are associated (or correlated) with Biomerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerica has no effect on the direction of Aurora Spine i.e., Aurora Spine and Biomerica go up and down completely randomly.
Pair Corralation between Aurora Spine and Biomerica
Assuming the 90 days horizon Aurora Spine is expected to generate 22.09 times less return on investment than Biomerica. But when comparing it to its historical volatility, Aurora Spine is 2.62 times less risky than Biomerica. It trades about 0.01 of its potential returns per unit of risk. Biomerica is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Biomerica on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Biomerica or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Spine vs. Biomerica
Performance |
| Timeline |
| Aurora Spine |
| Biomerica |
Aurora Spine and Biomerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Spine and Biomerica
The main advantage of trading using opposite Aurora Spine and Biomerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Spine position performs unexpectedly, Biomerica 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 Biomerica will offset losses from the drop in Biomerica's long position.| Aurora Spine vs. Armm Inc | Aurora Spine vs. Cellink AB | Aurora Spine vs. Bone Biologics Corp | Aurora Spine vs. BICO Group AB |
| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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