Correlation Between BioLineRx and Collplant Biotechnologies
Can any of the company-specific risk be diversified away by investing in both BioLineRx and Collplant Biotechnologies 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 BioLineRx and Collplant Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLineRx and Collplant Biotechnologies, you can compare the effects of market volatilities on BioLineRx and Collplant Biotechnologies 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 BioLineRx with a short position of Collplant Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLineRx and Collplant Biotechnologies.
Diversification Opportunities for BioLineRx and Collplant Biotechnologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BioLineRx and Collplant is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BioLineRx and Collplant Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collplant Biotechnologies and BioLineRx 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 BioLineRx are associated (or correlated) with Collplant Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collplant Biotechnologies has no effect on the direction of BioLineRx i.e., BioLineRx and Collplant Biotechnologies go up and down completely randomly.
Pair Corralation between BioLineRx and Collplant Biotechnologies
Given the investment horizon of 90 days BioLineRx is expected to generate 1.36 times more return on investment than Collplant Biotechnologies. However, BioLineRx is 1.36 times more volatile than Collplant Biotechnologies. It trades about 0.0 of its potential returns per unit of risk. Collplant Biotechnologies is currently generating about -0.02 per unit of risk. If you would invest 68.00 in BioLineRx on August 27, 2024 and sell it today you would lose (40.00) from holding BioLineRx or give up 58.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLineRx vs. Collplant Biotechnologies
Performance |
| Timeline |
| BioLineRx |
| Collplant Biotechnologies |
BioLineRx and Collplant Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLineRx and Collplant Biotechnologies
The main advantage of trading using opposite BioLineRx and Collplant Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLineRx position performs unexpectedly, Collplant Biotechnologies 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 Collplant Biotechnologies will offset losses from the drop in Collplant Biotechnologies' long position.| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
| Collplant Biotechnologies vs. Keros Therapeutics | Collplant Biotechnologies vs. Merus BV | Collplant Biotechnologies vs. Vericel Corp Ord | Collplant Biotechnologies vs. Century Therapeutics |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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