Correlation Between Biodesix and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Biodesix and BioAffinity Technologies 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 Biodesix and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biodesix and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Biodesix and BioAffinity Technologies 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 Biodesix with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodesix and BioAffinity Technologies.
Diversification Opportunities for Biodesix and BioAffinity Technologies
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biodesix and BioAffinity is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Biodesix and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Biodesix 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 Biodesix are associated (or correlated) with BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Biodesix i.e., Biodesix and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Biodesix and BioAffinity Technologies
Given the investment horizon of 90 days Biodesix is expected to under-perform the BioAffinity Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Biodesix is 2.6 times less risky than BioAffinity Technologies. The stock trades about -0.29 of its potential returns per unit of risk. The bioAffinity Technologies Warrant is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 37.00 in bioAffinity Technologies Warrant on October 23, 2024 and sell it today you would earn a total of 12.00 from holding bioAffinity Technologies Warrant or generate 32.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.78% |
| Values | Daily Returns |
Biodesix vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| Biodesix |
| BioAffinity Technologies |
Biodesix and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biodesix and BioAffinity Technologies
The main advantage of trading using opposite Biodesix and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodesix position performs unexpectedly, BioAffinity Technologies 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 BioAffinity Technologies will offset losses from the drop in BioAffinity Technologies' long position.| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth Corp |
| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. AAP Inc | BioAffinity Technologies vs. Discount Print USA | BioAffinity Technologies vs. China Dongsheng International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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