Correlation Between Astar and BioLine RX
Can any of the company-specific risk be diversified away by investing in both Astar and BioLine RX 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 Astar and BioLine RX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and BioLine RX, you can compare the effects of market volatilities on Astar and BioLine RX 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 Astar with a short position of BioLine RX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and BioLine RX.
Diversification Opportunities for Astar and BioLine RX
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astar and BioLine is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Astar and BioLine RX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLine RX and Astar 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 Astar are associated (or correlated) with BioLine RX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLine RX has no effect on the direction of Astar i.e., Astar and BioLine RX go up and down completely randomly.
Pair Corralation between Astar and BioLine RX
Assuming the 90 days trading horizon Astar is expected to generate 0.7 times more return on investment than BioLine RX. However, Astar is 1.43 times less risky than BioLine RX. It trades about 0.09 of its potential returns per unit of risk. BioLine RX is currently generating about -0.42 per unit of risk. If you would invest 5.92 in Astar on October 21, 2024 and sell it today you would earn a total of 0.44 from holding Astar or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Astar vs. BioLine RX
Performance |
| Timeline |
| Astar |
| BioLine RX |
Astar and BioLine RX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and BioLine RX
The main advantage of trading using opposite Astar and BioLine RX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, BioLine RX 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 BioLine RX will offset losses from the drop in BioLine RX's long position.The idea behind Astar and BioLine RX 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.| BioLine RX vs. Evogene | BioLine RX vs. Enlivex Therapeutics | BioLine RX vs. Kamada | BioLine RX vs. Compugen |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |