Correlation Between BioAffinity Technologies, and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies, and Lixte Biotechnology 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 Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bioAffinity Technologies, and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on BioAffinity Technologies, and Lixte Biotechnology 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 Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies, and Lixte Biotechnology.
Diversification Opportunities for BioAffinity Technologies, and Lixte Biotechnology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BioAffinity and Lixte is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies, and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology 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 Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of BioAffinity Technologies, i.e., BioAffinity Technologies, and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between BioAffinity Technologies, and Lixte Biotechnology
Given the investment horizon of 90 days bioAffinity Technologies, is expected to under-perform the Lixte Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, bioAffinity Technologies, is 1.41 times less risky than Lixte Biotechnology. The stock trades about -0.18 of its potential returns per unit of risk. The Lixte Biotechnology Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Lixte Biotechnology Holdings on October 24, 2024 and sell it today you would earn a total of 52.00 from holding Lixte Biotechnology Holdings or generate 28.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bioAffinity Technologies, vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| bioAffinity Technologies, |
| Lixte Biotechnology |
BioAffinity Technologies, and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies, and Lixte Biotechnology
The main advantage of trading using opposite BioAffinity Technologies, and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies, position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| BioAffinity Technologies, vs. Nuvalent | BioAffinity Technologies, vs. Arcellx | BioAffinity Technologies, vs. Vaxcyte | BioAffinity Technologies, vs. Crinetics Pharmaceuticals |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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