Correlation Between BG Medicine and Innovative Eyewear
Can any of the company-specific risk be diversified away by investing in both BG Medicine and Innovative Eyewear 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 BG Medicine and Innovative Eyewear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Medicine and Innovative Eyewear, you can compare the effects of market volatilities on BG Medicine and Innovative Eyewear 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 BG Medicine with a short position of Innovative Eyewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Medicine and Innovative Eyewear.
Diversification Opportunities for BG Medicine and Innovative Eyewear
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BGMD and Innovative is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BG Medicine and Innovative Eyewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Eyewear and BG Medicine 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 BG Medicine are associated (or correlated) with Innovative Eyewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Eyewear has no effect on the direction of BG Medicine i.e., BG Medicine and Innovative Eyewear go up and down completely randomly.
Pair Corralation between BG Medicine and Innovative Eyewear
If you would invest (100.00) in BG Medicine on November 28, 2024 and sell it today you would earn a total of 100.00 from holding BG Medicine or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BG Medicine vs. Innovative Eyewear
Performance |
| Timeline |
| BG Medicine |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Innovative Eyewear |
BG Medicine and Innovative Eyewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BG Medicine and Innovative Eyewear
The main advantage of trading using opposite BG Medicine and Innovative Eyewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Medicine position performs unexpectedly, Innovative Eyewear 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 Innovative Eyewear will offset losses from the drop in Innovative Eyewear's long position.| BG Medicine vs. Innovative Eyewear | BG Medicine vs. Sharps Technology | BG Medicine vs. GlucoTrack | BG Medicine vs. Microbot Medical |
| Innovative Eyewear vs. Sharps Technology | Innovative Eyewear vs. JIN MEDICAL INTERNATIONAL | Innovative Eyewear vs. Nexgel Inc | Innovative Eyewear vs. GlucoTrack |
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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