Correlation Between Biodesix and ENDRA Life
Can any of the company-specific risk be diversified away by investing in both Biodesix and ENDRA Life 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 ENDRA Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biodesix and ENDRA Life Sciences, you can compare the effects of market volatilities on Biodesix and ENDRA Life 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 ENDRA Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodesix and ENDRA Life.
Diversification Opportunities for Biodesix and ENDRA Life
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biodesix and ENDRA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Biodesix and ENDRA Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENDRA Life Sciences 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 ENDRA Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENDRA Life Sciences has no effect on the direction of Biodesix i.e., Biodesix and ENDRA Life go up and down completely randomly.
Pair Corralation between Biodesix and ENDRA Life
Given the investment horizon of 90 days Biodesix is expected to generate 0.47 times more return on investment than ENDRA Life. However, Biodesix is 2.11 times less risky than ENDRA Life. It trades about 0.03 of its potential returns per unit of risk. ENDRA Life Sciences is currently generating about -0.08 per unit of risk. If you would invest 140.00 in Biodesix on August 30, 2024 and sell it today you would earn a total of 2.50 from holding Biodesix or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biodesix vs. ENDRA Life Sciences
Performance |
| Timeline |
| Biodesix |
| ENDRA Life Sciences |
Biodesix and ENDRA Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biodesix and ENDRA Life
The main advantage of trading using opposite Biodesix and ENDRA Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodesix position performs unexpectedly, ENDRA Life 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 ENDRA Life will offset losses from the drop in ENDRA Life's long position.| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth Corp |
| ENDRA Life vs. Burning Rock Biotech | ENDRA Life vs. Neuronetics | ENDRA Life vs. DarioHealth Corp | ENDRA Life vs. Sera Prognostics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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