Correlation Between BioAffinity Technologies and Compugen
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies and Compugen 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 Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bioAffinity Technologies Warrant and Compugen, you can compare the effects of market volatilities on BioAffinity Technologies and Compugen 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 Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies and Compugen.
Diversification Opportunities for BioAffinity Technologies and Compugen
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioAffinity and Compugen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen 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 Warrant are associated (or correlated) with Compugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugen has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and Compugen go up and down completely randomly.
Pair Corralation between BioAffinity Technologies and Compugen
Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to generate 25.76 times more return on investment than Compugen. However, BioAffinity Technologies is 25.76 times more volatile than Compugen. It trades about 0.11 of its potential returns per unit of risk. Compugen is currently generating about -0.05 per unit of risk. If you would invest 25.00 in bioAffinity Technologies Warrant on September 1, 2024 and sell it today you would earn a total of 47.00 from holding bioAffinity Technologies Warrant or generate 188.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.06% |
| Values | Daily Returns |
bioAffinity Technologies Warra vs. Compugen
Performance |
| Timeline |
| BioAffinity Technologies |
| Compugen |
BioAffinity Technologies and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies and Compugen
The main advantage of trading using opposite BioAffinity Technologies and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies position performs unexpectedly, Compugen 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 Compugen will offset losses from the drop in Compugen's long position.| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. AAP Inc | BioAffinity Technologies vs. Discount Print USA | BioAffinity Technologies vs. China Dongsheng International |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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