Correlation Between Biomerica and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both Biomerica and Bone Biologics 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 Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerica and Bone Biologics Corp, you can compare the effects of market volatilities on Biomerica and Bone Biologics 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 Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerica and Bone Biologics.
Diversification Opportunities for Biomerica and Bone Biologics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biomerica and Bone is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Biomerica and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp 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 Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Biomerica i.e., Biomerica and Bone Biologics go up and down completely randomly.
Pair Corralation between Biomerica and Bone Biologics
Given the investment horizon of 90 days Biomerica is expected to generate 4.52 times more return on investment than Bone Biologics. However, Biomerica is 4.52 times more volatile than Bone Biologics Corp. It trades about 0.21 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about 0.06 per unit of risk. If you would invest 30.00 in Biomerica on November 2, 2024 and sell it today you would earn a total of 26.00 from holding Biomerica or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerica vs. Bone Biologics Corp
Performance |
| Timeline |
| Biomerica |
| Bone Biologics Corp |
Biomerica and Bone Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerica and Bone Biologics
The main advantage of trading using opposite Biomerica and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerica position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
| Bone Biologics vs. Bluejay Diagnostics | Bone Biologics vs. Nuwellis | Bone Biologics vs. Heart Test Laboratories | Bone Biologics vs. Tivic Health Systems |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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