Correlation Between Biomerica and Aurora Spine
Can any of the company-specific risk be diversified away by investing in both Biomerica and Aurora Spine 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 Biomerica and Aurora Spine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerica and Aurora Spine, you can compare the effects of market volatilities on Biomerica and Aurora Spine 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 Biomerica with a short position of Aurora Spine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerica and Aurora Spine.
Diversification Opportunities for Biomerica and Aurora Spine
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biomerica and Aurora is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Biomerica and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine and Biomerica 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 Biomerica are associated (or correlated) with Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Biomerica i.e., Biomerica and Aurora Spine go up and down completely randomly.
Pair Corralation between Biomerica and Aurora Spine
Given the investment horizon of 90 days Biomerica is expected to generate 2.39 times more return on investment than Aurora Spine. However, Biomerica is 2.39 times more volatile than Aurora Spine. It trades about 0.07 of its potential returns per unit of risk. Aurora Spine is currently generating about 0.01 per unit of risk. If you would invest 37.00 in Biomerica on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Biomerica or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerica vs. Aurora Spine
Performance |
| Timeline |
| Biomerica |
| Aurora Spine |
Biomerica and Aurora Spine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerica and Aurora Spine
The main advantage of trading using opposite Biomerica and Aurora Spine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerica position performs unexpectedly, Aurora Spine 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 Aurora Spine will offset losses from the drop in Aurora Spine's long position.| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
| Aurora Spine vs. Armm Inc | Aurora Spine vs. Cellink AB | Aurora Spine vs. Bone Biologics Corp | Aurora Spine vs. BICO Group AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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