Correlation Between Biotron and Biovaxys Technology
Can any of the company-specific risk be diversified away by investing in both Biotron and Biovaxys Technology 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 Biovaxys Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotron Limited and Biovaxys Technology Corp, you can compare the effects of market volatilities on Biotron and Biovaxys Technology 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 Biovaxys Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotron and Biovaxys Technology.
Diversification Opportunities for Biotron and Biovaxys Technology
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biotron and Biovaxys is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Biotron Limited and Biovaxys Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biovaxys Technology Corp 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 Biovaxys Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biovaxys Technology Corp has no effect on the direction of Biotron i.e., Biotron and Biovaxys Technology go up and down completely randomly.
Pair Corralation between Biotron and Biovaxys Technology
Assuming the 90 days horizon Biotron Limited is expected to generate 9.31 times more return on investment than Biovaxys Technology. However, Biotron is 9.31 times more volatile than Biovaxys Technology Corp. It trades about 0.22 of its potential returns per unit of risk. Biovaxys Technology Corp is currently generating about -0.1 per unit of risk. If you would invest 1.00 in Biotron Limited on November 3, 2024 and sell it today you would earn a total of 3.97 from holding Biotron Limited or generate 397.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Biotron Limited vs. Biovaxys Technology Corp
Performance |
| Timeline |
| Biotron Limited |
| Biovaxys Technology Corp |
Biotron and Biovaxys Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotron and Biovaxys Technology
The main advantage of trading using opposite Biotron and Biovaxys Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotron position performs unexpectedly, Biovaxys Technology 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 Biovaxys Technology will offset losses from the drop in Biovaxys Technology's long position.| Biotron vs. biOasis Technologies | Biotron vs. Covalon Technologies | Biotron vs. Mosaic Immunoengineering | Biotron vs. Cellectis SA |
| Biovaxys Technology vs. Biotron Limited | Biovaxys Technology vs. biOasis Technologies | Biovaxys Technology vs. Covalon Technologies | Biovaxys Technology vs. Mosaic Immunoengineering |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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