Correlation Between Bionik Laboratories and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Bionik Laboratories and Saker Aviation 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 Bionik Laboratories and Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bionik Laboratories Corp and Saker Aviation Services, you can compare the effects of market volatilities on Bionik Laboratories and Saker Aviation 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 Bionik Laboratories with a short position of Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionik Laboratories and Saker Aviation.
Diversification Opportunities for Bionik Laboratories and Saker Aviation
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bionik and Saker is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bionik Laboratories Corp and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Bionik Laboratories 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 Bionik Laboratories Corp are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Bionik Laboratories i.e., Bionik Laboratories and Saker Aviation go up and down completely randomly.
Pair Corralation between Bionik Laboratories and Saker Aviation
Given the investment horizon of 90 days Bionik Laboratories Corp is expected to generate 13.77 times more return on investment than Saker Aviation. However, Bionik Laboratories is 13.77 times more volatile than Saker Aviation Services. It trades about 0.05 of its potential returns per unit of risk. Saker Aviation Services is currently generating about 0.06 per unit of risk. If you would invest 50.00 in Bionik Laboratories Corp on September 2, 2024 and sell it today you would lose (50.00) from holding Bionik Laboratories Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bionik Laboratories Corp vs. Saker Aviation Services
Performance |
| Timeline |
| Bionik Laboratories Corp |
| Saker Aviation Services |
Bionik Laboratories and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bionik Laboratories and Saker Aviation
The main advantage of trading using opposite Bionik Laboratories and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bionik Laboratories position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Bionik Laboratories vs. Tenaris SA ADR | Bionik Laboratories vs. Tianjin Capital Environmental | Bionik Laboratories vs. AKITA Drilling | Bionik Laboratories vs. Titan International |
| Saker Aviation vs. Seychelle Environmtl | Saker Aviation vs. Energy and Water | Saker Aviation vs. One World Universe | Saker Aviation vs. Vow ASA |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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