Correlation Between Burning Rock and Arrayit

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Can any of the company-specific risk be diversified away by investing in both Burning Rock and Arrayit 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 Burning Rock and Arrayit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burning Rock Biotech and Arrayit, you can compare the effects of market volatilities on Burning Rock and Arrayit 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 Burning Rock with a short position of Arrayit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Arrayit.

Diversification Opportunities for Burning Rock and Arrayit

BurningArrayitDiversified AwayBurningArrayitDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Burning and Arrayit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Arrayit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrayit and Burning Rock 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 Burning Rock Biotech are associated (or correlated) with Arrayit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrayit has no effect on the direction of Burning Rock i.e., Burning Rock and Arrayit go up and down completely randomly.

Pair Corralation between Burning Rock and Arrayit

If you would invest  0.01  in Arrayit on December 4, 2024 and sell it today you would earn a total of  0.00  from holding Arrayit or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Burning Rock Biotech  vs.  Arrayit

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010203040
JavaScript chart by amCharts 3.21.15BNR ARYC
       Timeline  
Burning Rock Biotech 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Burning Rock Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15JanFebMarFebMar5.566.577.5
Arrayit 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Arrayit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Arrayit is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15JanFebFebMar0.00010.0001050.000110.000115

Burning Rock and Arrayit Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-21.2-15.88-10.55-5.230.08875.3610.8216.2721.72 0.0020.0040.0060.008
JavaScript chart by amCharts 3.21.15BNR ARYC
       Returns  

Pair Trading with Burning Rock and Arrayit

The main advantage of trading using opposite Burning Rock and Arrayit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, Arrayit 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 Arrayit will offset losses from the drop in Arrayit's long position.
The idea behind Burning Rock Biotech and Arrayit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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