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
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bionoid and HLS is -0.01. 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 4.95 times more return on investment than HLS Therapeutics. However, Bionoid Pharma is 4.95 times more volatile than HLS Therapeutics. It trades about 0.07 of its potential returns per unit of risk. HLS Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 45.00 in Bionoid Pharma on August 26, 2024 and sell it today you would lose (25.00) from holding Bionoid Pharma or give up 55.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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. Aerofoam Metals | Bionoid Pharma vs. Zijin Mining Group | Bionoid Pharma vs. Bridgford Foods | Bionoid Pharma vs. Hf Foods Group |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |