Correlation Between Biotron and BiOasis Technologies
Can any of the company-specific risk be diversified away by investing in both Biotron and BiOasis Technologies 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 Biotron and BiOasis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotron Limited and biOasis Technologies, you can compare the effects of market volatilities on Biotron and BiOasis Technologies 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 Biotron with a short position of BiOasis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotron and BiOasis Technologies.
Diversification Opportunities for Biotron and BiOasis Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biotron and BiOasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biotron Limited and biOasis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on biOasis Technologies and Biotron 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 Biotron Limited are associated (or correlated) with BiOasis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of biOasis Technologies has no effect on the direction of Biotron i.e., Biotron and BiOasis Technologies go up and down completely randomly.
Pair Corralation between Biotron and BiOasis Technologies
Assuming the 90 days horizon Biotron Limited is expected to generate 1.96 times more return on investment than BiOasis Technologies. However, Biotron is 1.96 times more volatile than biOasis Technologies. It trades about 0.04 of its potential returns per unit of risk. biOasis Technologies is currently generating about 0.06 per unit of risk. If you would invest 2.06 in Biotron Limited on August 28, 2024 and sell it today you would lose (0.81) from holding Biotron Limited or give up 39.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Biotron Limited vs. biOasis Technologies
Performance |
| Timeline |
| Biotron Limited |
| biOasis Technologies |
Biotron and BiOasis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotron and BiOasis Technologies
The main advantage of trading using opposite Biotron and BiOasis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotron position performs unexpectedly, BiOasis Technologies 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 BiOasis Technologies will offset losses from the drop in BiOasis Technologies' long position.| Biotron vs. biOasis Technologies | Biotron vs. Covalon Technologies | Biotron vs. Mosaic Immunoengineering | Biotron vs. Cellectis SA |
| BiOasis Technologies vs. Rezolute | BiOasis Technologies vs. Tempest Therapeutics | BiOasis Technologies vs. Forte Biosciences | BiOasis Technologies vs. Dyadic International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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