Correlation Between Biocept and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Biocept and Intelligent Bio 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 Biocept and Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocept and Intelligent Bio Solutions, you can compare the effects of market volatilities on Biocept and Intelligent Bio 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 Biocept with a short position of Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocept and Intelligent Bio.
Diversification Opportunities for Biocept and Intelligent Bio
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Biocept and Intelligent is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Biocept and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Biocept 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 Biocept are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Biocept i.e., Biocept and Intelligent Bio go up and down completely randomly.
Pair Corralation between Biocept and Intelligent Bio
If you would invest 145.00 in Biocept on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Biocept or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Biocept vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Biocept |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intelligent Bio Solutions |
Biocept and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocept and Intelligent Bio
The main advantage of trading using opposite Biocept and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocept position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.The idea behind Biocept and Intelligent Bio Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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