Correlation Between Burning Rock and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Burning Rock and Intelligent Bio 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 Intelligent Bio 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 Intelligent Bio Solutions, you can compare the effects of market volatilities on Burning Rock and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Intelligent Bio.
Diversification Opportunities for Burning Rock and Intelligent Bio
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burning and Intelligent is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Burning Rock i.e., Burning Rock and Intelligent Bio go up and down completely randomly.
Pair Corralation between Burning Rock and Intelligent Bio
Considering the 90-day investment horizon Burning Rock Biotech is expected to generate 1.08 times more return on investment than Intelligent Bio. However, Burning Rock is 1.08 times more volatile than Intelligent Bio Solutions. It trades about 0.0 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.01 per unit of risk. If you would invest 715.00 in Burning Rock Biotech on August 29, 2024 and sell it today you would lose (184.00) from holding Burning Rock Biotech or give up 25.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Burning Rock Biotech |
| Intelligent Bio Solutions |
Burning Rock and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Intelligent Bio
The main advantage of trading using opposite Burning Rock and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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