Correlation Between BIO Key and Ballistic Recovery
Can any of the company-specific risk be diversified away by investing in both BIO Key and Ballistic Recovery 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 Ballistic Recovery 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 Ballistic Recovery Systems, you can compare the effects of market volatilities on BIO Key and Ballistic Recovery 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 Ballistic Recovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Ballistic Recovery.
Diversification Opportunities for BIO Key and Ballistic Recovery
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIO and Ballistic is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Ballistic Recovery Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballistic Recovery 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 Ballistic Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballistic Recovery has no effect on the direction of BIO Key i.e., BIO Key and Ballistic Recovery go up and down completely randomly.
Pair Corralation between BIO Key and Ballistic Recovery
Given the investment horizon of 90 days BIO Key International is expected to generate 1.93 times more return on investment than Ballistic Recovery. However, BIO Key is 1.93 times more volatile than Ballistic Recovery Systems. It trades about 0.09 of its potential returns per unit of risk. Ballistic Recovery Systems is currently generating about -0.15 per unit of risk. If you would invest 112.00 in BIO Key International on November 3, 2024 and sell it today you would earn a total of 22.00 from holding BIO Key International or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
BIO Key International vs. Ballistic Recovery Systems
Performance |
| Timeline |
| BIO Key International |
| Ballistic Recovery |
BIO Key and Ballistic Recovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Ballistic Recovery
The main advantage of trading using opposite BIO Key and Ballistic Recovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key position performs unexpectedly, Ballistic Recovery 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 Ballistic Recovery will offset losses from the drop in Ballistic Recovery's long position.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| Ballistic Recovery vs. Coty Inc | Ballistic Recovery vs. ServiceNow | Ballistic Recovery vs. Acme United | Ballistic Recovery vs. Estee Lauder Companies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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