Correlation Between Burning Rock and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Burning Rock and BioAffinity 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 Burning Rock and BioAffinity Technologies 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 bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Burning Rock and BioAffinity 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 Burning Rock with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and BioAffinity Technologies.
Diversification Opportunities for Burning Rock and BioAffinity Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burning and BioAffinity is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies 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 BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Burning Rock i.e., Burning Rock and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Burning Rock and BioAffinity Technologies
Considering the 90-day investment horizon Burning Rock Biotech is expected to under-perform the BioAffinity Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Burning Rock Biotech is 11.42 times less risky than BioAffinity Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The bioAffinity Technologies Warrant is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 33.00 in bioAffinity Technologies Warrant on December 4, 2024 and sell it today you would lose (3.97) from holding bioAffinity Technologies Warrant or give up 12.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.94% |
| Values | Daily Returns |
Burning Rock Biotech vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| Burning Rock Biotech |
| BioAffinity Technologies |
Burning Rock and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and BioAffinity Technologies
The main advantage of trading using opposite Burning Rock and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, BioAffinity 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 BioAffinity Technologies will offset losses from the drop in BioAffinity Technologies' long position.| Burning Rock vs. Fonar | ||
| Burning Rock vs. Sera Prognostics | ||
| Burning Rock vs. Neuronetics | ||
| Burning Rock vs. DarioHealth Corp |
| BioAffinity Technologies vs. bioAffinity Technologies, | ||
| BioAffinity Technologies vs. AAP Inc | ||
| BioAffinity Technologies vs. Discount Print USA | ||
| BioAffinity Technologies vs. China Dongsheng International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |