Correlation Between BioLineRx and MAIA Biotechnology
Can any of the company-specific risk be diversified away by investing in both BioLineRx and MAIA Biotechnology 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 MAIA Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLineRx and MAIA Biotechnology, you can compare the effects of market volatilities on BioLineRx and MAIA Biotechnology 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 MAIA Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLineRx and MAIA Biotechnology.
Diversification Opportunities for BioLineRx and MAIA Biotechnology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioLineRx and MAIA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding BioLineRx and MAIA Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAIA Biotechnology 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 MAIA Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAIA Biotechnology has no effect on the direction of BioLineRx i.e., BioLineRx and MAIA Biotechnology go up and down completely randomly.
Pair Corralation between BioLineRx and MAIA Biotechnology
Given the investment horizon of 90 days BioLineRx is expected to under-perform the MAIA Biotechnology. In addition to that, BioLineRx is 1.78 times more volatile than MAIA Biotechnology. It trades about -0.15 of its total potential returns per unit of risk. MAIA Biotechnology is currently generating about -0.11 per unit of volatility. If you would invest 251.00 in MAIA Biotechnology on August 28, 2024 and sell it today you would lose (42.00) from holding MAIA Biotechnology or give up 16.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLineRx vs. MAIA Biotechnology
Performance |
| Timeline |
| BioLineRx |
| MAIA Biotechnology |
BioLineRx and MAIA Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLineRx and MAIA Biotechnology
The main advantage of trading using opposite BioLineRx and MAIA Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLineRx position performs unexpectedly, MAIA Biotechnology 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 MAIA Biotechnology will offset losses from the drop in MAIA Biotechnology's long position.| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |