Correlation Between BioAffinity Technologies, and Cyclacel Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies, and Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bioAffinity Technologies, and Cyclacel Pharmaceuticals, you can compare the effects of market volatilities on BioAffinity Technologies, and Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies, and Cyclacel Pharmaceuticals.
Diversification Opportunities for BioAffinity Technologies, and Cyclacel Pharmaceuticals
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioAffinity and Cyclacel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies, and Cyclacel Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyclacel Pharmaceuticals has no effect on the direction of BioAffinity Technologies, i.e., BioAffinity Technologies, and Cyclacel Pharmaceuticals go up and down completely randomly.
Pair Corralation between BioAffinity Technologies, and Cyclacel Pharmaceuticals
Given the investment horizon of 90 days bioAffinity Technologies, is expected to under-perform the Cyclacel Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, bioAffinity Technologies, is 1.25 times less risky than Cyclacel Pharmaceuticals. The stock trades about -0.16 of its potential returns per unit of risk. The Cyclacel Pharmaceuticals is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Cyclacel Pharmaceuticals on November 3, 2024 and sell it today you would lose (4.00) from holding Cyclacel Pharmaceuticals or give up 10.81% 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. Cyclacel Pharmaceuticals
Performance |
| Timeline |
| bioAffinity Technologies, |
| Cyclacel Pharmaceuticals |
BioAffinity Technologies, and Cyclacel Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies, and Cyclacel Pharmaceuticals
The main advantage of trading using opposite BioAffinity Technologies, and Cyclacel Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies, position performs unexpectedly, Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals will offset losses from the drop in Cyclacel Pharmaceuticals' long position.| BioAffinity Technologies, vs. Intelligent Bio Solutions | BioAffinity Technologies, vs. T2 Biosystms | BioAffinity Technologies, vs. Precipio |
| Cyclacel Pharmaceuticals vs. Ikena Oncology | Cyclacel Pharmaceuticals vs. Ovid Therapeutics | Cyclacel Pharmaceuticals vs. Connect Biopharma Holdings | Cyclacel Pharmaceuticals vs. Edgewise Therapeutics |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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