Correlation Between Bionoid Pharma and HLS Therapeutics
Can any of the company-specific risk be diversified away by investing in both Bionoid Pharma and HLS Therapeutics 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 Bionoid Pharma and HLS Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionoid Pharma and HLS Therapeutics, you can compare the effects of market volatilities on Bionoid Pharma and HLS Therapeutics 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 Bionoid Pharma with a short position of HLS Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionoid Pharma and HLS Therapeutics.
Diversification Opportunities for Bionoid Pharma and HLS Therapeutics
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bionoid and HLS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bionoid Pharma and HLS Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLS Therapeutics and Bionoid Pharma 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 Bionoid Pharma are associated (or correlated) with HLS Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLS Therapeutics has no effect on the direction of Bionoid Pharma i.e., Bionoid Pharma and HLS Therapeutics go up and down completely randomly.
Pair Corralation between Bionoid Pharma and HLS Therapeutics
Given the investment horizon of 90 days Bionoid Pharma is expected to generate 11.57 times more return on investment than HLS Therapeutics. However, Bionoid Pharma is 11.57 times more volatile than HLS Therapeutics. It trades about 0.06 of its potential returns per unit of risk. HLS Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 100.00 in Bionoid Pharma on November 2, 2024 and sell it today you would lose (72.00) from holding Bionoid Pharma or give up 72.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bionoid Pharma vs. HLS Therapeutics
Performance |
| Timeline |
| Bionoid Pharma |
| HLS Therapeutics |
Bionoid Pharma and HLS Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionoid Pharma and HLS Therapeutics
The main advantage of trading using opposite Bionoid Pharma and HLS Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionoid Pharma position performs unexpectedly, HLS Therapeutics 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 HLS Therapeutics will offset losses from the drop in HLS Therapeutics' long position.| Bionoid Pharma vs. Weibo Corp | Bionoid Pharma vs. Tandem Diabetes Care | Bionoid Pharma vs. Cardinal Health | Bionoid Pharma vs. Space Communication |
| HLS Therapeutics vs. Aion Therapeutic | HLS Therapeutics vs. Cannara Biotech | HLS Therapeutics vs. Knight Therapeutics | HLS Therapeutics vs. Canntab Therapeutics Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |