Correlation Between BioLight Life and YD More
Can any of the company-specific risk be diversified away by investing in both BioLight Life and YD More 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 BioLight Life and YD More into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLight Life Sciences and YD More Investments, you can compare the effects of market volatilities on BioLight Life and YD More 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 BioLight Life with a short position of YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLight Life and YD More.
Diversification Opportunities for BioLight Life and YD More
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioLight and MRIN is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding BioLight Life Sciences and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments and BioLight Life 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 BioLight Life Sciences are associated (or correlated) with YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of BioLight Life i.e., BioLight Life and YD More go up and down completely randomly.
Pair Corralation between BioLight Life and YD More
Assuming the 90 days trading horizon BioLight Life is expected to generate 1.02 times less return on investment than YD More. In addition to that, BioLight Life is 3.57 times more volatile than YD More Investments. It trades about 0.12 of its total potential returns per unit of risk. YD More Investments is currently generating about 0.42 per unit of volatility. If you would invest 111,400 in YD More Investments on September 2, 2024 and sell it today you would earn a total of 22,100 from holding YD More Investments or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLight Life Sciences vs. YD More Investments
Performance |
| Timeline |
| BioLight Life Sciences |
| YD More Investments |
BioLight Life and YD More Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLight Life and YD More
The main advantage of trading using opposite BioLight Life and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLight Life position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More's long position.| BioLight Life vs. Seach Medical Group | BioLight Life vs. Homebiogas | BioLight Life vs. Imed Infinity Medical Limited | BioLight Life vs. Sofwave Medical |
| YD More vs. Bank Leumi Le Israel | YD More vs. Mizrahi Tefahot | YD More vs. Israel Discount Bank | YD More vs. Bank Hapoalim |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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