Correlation Between Bone Biologics and GN Store
Can any of the company-specific risk be diversified away by investing in both Bone Biologics and GN Store 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 Bone Biologics and GN Store into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bone Biologics Corp and GN Store Nord, you can compare the effects of market volatilities on Bone Biologics and GN Store 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 Bone Biologics with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bone Biologics and GN Store.
Diversification Opportunities for Bone Biologics and GN Store
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bone and GNNDY is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and Bone Biologics 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 Bone Biologics Corp are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Bone Biologics i.e., Bone Biologics and GN Store go up and down completely randomly.
Pair Corralation between Bone Biologics and GN Store
Assuming the 90 days horizon Bone Biologics Corp is expected to under-perform the GN Store. In addition to that, Bone Biologics is 1.47 times more volatile than GN Store Nord. It trades about -0.07 of its total potential returns per unit of risk. GN Store Nord is currently generating about -0.06 per unit of volatility. If you would invest 5,825 in GN Store Nord on August 26, 2024 and sell it today you would lose (177.00) from holding GN Store Nord or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bone Biologics Corp vs. GN Store Nord
Performance |
| Timeline |
| Bone Biologics Corp |
| GN Store Nord |
Bone Biologics and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bone Biologics and GN Store
The main advantage of trading using opposite Bone Biologics and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| Bone Biologics vs. Heartbeam | Bone Biologics vs. EUDA Health Holdings | Bone Biologics vs. Nutex Health | Bone Biologics vs. Healthcare Triangle |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |