Correlation Between BiOasis Technologies and Gain Therapeutics
Can any of the company-specific risk be diversified away by investing in both BiOasis Technologies and Gain 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 BiOasis Technologies and Gain Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between biOasis Technologies and Gain Therapeutics, you can compare the effects of market volatilities on BiOasis Technologies and Gain 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 BiOasis Technologies with a short position of Gain Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BiOasis Technologies and Gain Therapeutics.
Diversification Opportunities for BiOasis Technologies and Gain Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BiOasis and Gain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Gain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gain Therapeutics and BiOasis 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 biOasis Technologies are associated (or correlated) with Gain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gain Therapeutics has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Gain Therapeutics go up and down completely randomly.
Pair Corralation between BiOasis Technologies and Gain Therapeutics
Assuming the 90 days horizon biOasis Technologies is expected to generate 4.69 times more return on investment than Gain Therapeutics. However, BiOasis Technologies is 4.69 times more volatile than Gain Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Gain Therapeutics is currently generating about 0.0 per unit of risk. If you would invest 12.00 in biOasis Technologies on August 29, 2024 and sell it today you would lose (11.99) from holding biOasis Technologies or give up 99.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
biOasis Technologies vs. Gain Therapeutics
Performance |
| Timeline |
| biOasis Technologies |
| Gain Therapeutics |
BiOasis Technologies and Gain Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BiOasis Technologies and Gain Therapeutics
The main advantage of trading using opposite BiOasis Technologies and Gain Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BiOasis Technologies position performs unexpectedly, Gain 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 Gain Therapeutics will offset losses from the drop in Gain Therapeutics' long position.| BiOasis Technologies vs. Rezolute | BiOasis Technologies vs. Tempest Therapeutics | BiOasis Technologies vs. Forte Biosciences | BiOasis Technologies vs. Dyadic International |
| Gain Therapeutics vs. Biovie Inc | Gain Therapeutics vs. In8bio Inc | Gain Therapeutics vs. NewAmsterdam Pharma | Gain Therapeutics vs. Cue Biopharma |
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 Stocks Directory module to find actively traded stocks across global markets.
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