Correlation Between Biomerica and Theralase Technologies
Can any of the company-specific risk be diversified away by investing in both Biomerica and Theralase Technologies 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 Theralase Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomerica and Theralase Technologies, you can compare the effects of market volatilities on Biomerica and Theralase Technologies 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 Theralase Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomerica and Theralase Technologies.
Diversification Opportunities for Biomerica and Theralase Technologies
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biomerica and Theralase is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Biomerica and Theralase Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theralase Technologies 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 Theralase Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theralase Technologies has no effect on the direction of Biomerica i.e., Biomerica and Theralase Technologies go up and down completely randomly.
Pair Corralation between Biomerica and Theralase Technologies
Given the investment horizon of 90 days Biomerica is expected to generate 5.16 times more return on investment than Theralase Technologies. However, Biomerica is 5.16 times more volatile than Theralase Technologies. It trades about 0.15 of its potential returns per unit of risk. Theralase Technologies is currently generating about -0.03 per unit of risk. If you would invest 34.00 in Biomerica on November 4, 2024 and sell it today you would earn a total of 16.00 from holding Biomerica or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomerica vs. Theralase Technologies
Performance |
| Timeline |
| Biomerica |
| Theralase Technologies |
Biomerica and Theralase Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomerica and Theralase Technologies
The main advantage of trading using opposite Biomerica and Theralase Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomerica position performs unexpectedly, Theralase Technologies 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 Theralase Technologies will offset losses from the drop in Theralase Technologies' long position.| Biomerica vs. SurModics | Biomerica vs. Movano Inc | Biomerica vs. Ainos Inc | Biomerica vs. Tivic Health Systems |
| Theralase Technologies vs. Biomerica | Theralase Technologies vs. Semler Scientific | Theralase Technologies vs. NanoVibronix | Theralase Technologies vs. Abbott Laboratories |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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