Correlation Between BIO Key and Avricore Health
Can any of the company-specific risk be diversified away by investing in both BIO Key and Avricore Health 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 BIO Key and Avricore Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIO Key International and Avricore Health, you can compare the effects of market volatilities on BIO Key and Avricore Health 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 BIO Key with a short position of Avricore Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Avricore Health.
Diversification Opportunities for BIO Key and Avricore Health
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIO and Avricore is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Avricore Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avricore Health and BIO Key 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 BIO Key International are associated (or correlated) with Avricore Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avricore Health has no effect on the direction of BIO Key i.e., BIO Key and Avricore Health go up and down completely randomly.
Pair Corralation between BIO Key and Avricore Health
Given the investment horizon of 90 days BIO Key International is expected to generate 4.51 times more return on investment than Avricore Health. However, BIO Key is 4.51 times more volatile than Avricore Health. It trades about 0.24 of its potential returns per unit of risk. Avricore Health is currently generating about 0.13 per unit of risk. If you would invest 87.00 in BIO Key International on October 21, 2024 and sell it today you would earn a total of 86.00 from holding BIO Key International or generate 98.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
BIO Key International vs. Avricore Health
Performance |
| Timeline |
| BIO Key International |
| Avricore Health |
BIO Key and Avricore Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Avricore Health
The main advantage of trading using opposite BIO Key and Avricore Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key position performs unexpectedly, Avricore Health 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 Avricore Health will offset losses from the drop in Avricore Health's long position.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| Avricore Health vs. China New Energy | Avricore Health vs. Charles River Laboratories | Avricore Health vs. Qiagen NV | Avricore Health vs. Thermo Fisher Scientific |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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