Correlation Between BioAffinity Technologies and Precipio
Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies and Precipio 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 Precipio 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 Precipio, you can compare the effects of market volatilities on BioAffinity Technologies and Precipio 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 Precipio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies and Precipio.
Diversification Opportunities for BioAffinity Technologies and Precipio
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioAffinity and Precipio is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and Precipio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipio 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 Precipio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipio has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and Precipio go up and down completely randomly.
Pair Corralation between BioAffinity Technologies and Precipio
Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to generate 19.46 times more return on investment than Precipio. However, BioAffinity Technologies is 19.46 times more volatile than Precipio. It trades about 0.1 of its potential returns per unit of risk. Precipio is currently generating about 0.0 per unit of risk. If you would invest 12.00 in bioAffinity Technologies Warrant on August 25, 2024 and sell it today you would earn a total of 45.00 from holding bioAffinity Technologies Warrant or generate 375.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 78.8% |
| Values | Daily Returns |
bioAffinity Technologies Warra vs. Precipio
Performance |
| Timeline |
| BioAffinity Technologies |
| Precipio |
BioAffinity Technologies and Precipio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioAffinity Technologies and Precipio
The main advantage of trading using opposite BioAffinity Technologies and Precipio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies position performs unexpectedly, Precipio 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 Precipio will offset losses from the drop in Precipio'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 |
| Precipio vs. Biodesix | Precipio vs. Sera Prognostics | Precipio vs. Applied DNA Sciences | Precipio vs. Caredx Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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