Correlation Between BioAffinity Technologies, and AAP
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies, and AAP 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 BioAffinity Technologies, and AAP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bioAffinity Technologies, and AAP Inc, you can compare the effects of market volatilities on BioAffinity Technologies, and AAP 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 BioAffinity Technologies, with a short position of AAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies, and AAP.
Diversification Opportunities for BioAffinity Technologies, and AAP
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioAffinity and AAP is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies, and AAP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAP Inc and BioAffinity Technologies, 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 bioAffinity Technologies, are associated (or correlated) with AAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAP Inc has no effect on the direction of BioAffinity Technologies, i.e., BioAffinity Technologies, and AAP go up and down completely randomly.
Pair Corralation between BioAffinity Technologies, and AAP
Given the investment horizon of 90 days bioAffinity Technologies, is expected to under-perform the AAP. But the stock apears to be less risky and, when comparing its historical volatility, bioAffinity Technologies, is 6.63 times less risky than AAP. The stock trades about -0.16 of its potential returns per unit of risk. The AAP Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.02 in AAP Inc on November 3, 2024 and sell it today you would lose (0.01) from holding AAP Inc or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
bioAffinity Technologies, vs. AAP Inc
Performance |
| Timeline |
| bioAffinity Technologies, |
| AAP Inc |
BioAffinity Technologies, and AAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies, and AAP
The main advantage of trading using opposite BioAffinity Technologies, and AAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies, position performs unexpectedly, AAP 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 AAP will offset losses from the drop in AAP's long position.| BioAffinity Technologies, vs. Intelligent Bio Solutions | BioAffinity Technologies, vs. T2 Biosystms | BioAffinity Technologies, vs. Precipio |
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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