Correlation Between Burning Rock and Mainz Biomed
Can any of the company-specific risk be diversified away by investing in both Burning Rock and Mainz Biomed 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 Mainz Biomed 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 Mainz Biomed BV, you can compare the effects of market volatilities on Burning Rock and Mainz Biomed 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 Mainz Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and Mainz Biomed.
Diversification Opportunities for Burning Rock and Mainz Biomed
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Burning and Mainz is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and Mainz Biomed BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainz Biomed BV 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 Mainz Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainz Biomed BV has no effect on the direction of Burning Rock i.e., Burning Rock and Mainz Biomed go up and down completely randomly.
Pair Corralation between Burning Rock and Mainz Biomed
Considering the 90-day investment horizon Burning Rock is expected to generate 9.29 times less return on investment than Mainz Biomed. But when comparing it to its historical volatility, Burning Rock Biotech is 17.45 times less risky than Mainz Biomed. It trades about 0.23 of its potential returns per unit of risk. Mainz Biomed BV is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Mainz Biomed BV on October 24, 2024 and sell it today you would earn a total of 462.00 from holding Mainz Biomed BV or generate 1650.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burning Rock Biotech vs. Mainz Biomed BV
Performance |
| Timeline |
| Burning Rock Biotech |
| Mainz Biomed BV |
Burning Rock and Mainz Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burning Rock and Mainz Biomed
The main advantage of trading using opposite Burning Rock and Mainz Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burning Rock position performs unexpectedly, Mainz Biomed 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 Mainz Biomed will offset losses from the drop in Mainz Biomed's long position.| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock vs. DarioHealth Corp |
| Mainz Biomed vs. Applied DNA Sciences | Mainz Biomed vs. Neuronetics | Mainz Biomed vs. Prenetics Global | Mainz Biomed vs. Fonar |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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