Correlation Between BIO Key and Zedcor
Can any of the company-specific risk be diversified away by investing in both BIO Key and Zedcor 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 Zedcor 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 Zedcor Inc, you can compare the effects of market volatilities on BIO Key and Zedcor 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 Zedcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Zedcor.
Diversification Opportunities for BIO Key and Zedcor
Modest diversification
The 3 months correlation between BIO and Zedcor is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Zedcor Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedcor Inc 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 Zedcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedcor Inc has no effect on the direction of BIO Key i.e., BIO Key and Zedcor go up and down completely randomly.
Pair Corralation between BIO Key and Zedcor
Given the investment horizon of 90 days BIO Key International is expected to generate 4.2 times more return on investment than Zedcor. However, BIO Key is 4.2 times more volatile than Zedcor Inc. It trades about 0.04 of its potential returns per unit of risk. Zedcor Inc is currently generating about 0.15 per unit of risk. If you would invest 167.00 in BIO Key International on November 3, 2024 and sell it today you would lose (33.00) from holding BIO Key International or give up 19.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
BIO Key International vs. Zedcor Inc
Performance |
| Timeline |
| BIO Key International |
| Zedcor Inc |
BIO Key and Zedcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Zedcor
The main advantage of trading using opposite BIO Key and Zedcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key position performs unexpectedly, Zedcor 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 Zedcor will offset losses from the drop in Zedcor's long position.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| Zedcor vs. BIO Key International | Zedcor vs. LogicMark | Zedcor vs. Knightscope | Zedcor vs. Guardforce AI Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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