Correlation Between Bio Path and Eyenovia
Can any of the company-specific risk be diversified away by investing in both Bio Path and Eyenovia 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 Bio Path and Eyenovia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Path Holdings and Eyenovia, you can compare the effects of market volatilities on Bio Path and Eyenovia 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 Bio Path with a short position of Eyenovia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Path and Eyenovia.
Diversification Opportunities for Bio Path and Eyenovia
Poor diversification
The 3 months correlation between Bio and Eyenovia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bio Path Holdings and Eyenovia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyenovia and Bio Path 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 Bio Path Holdings are associated (or correlated) with Eyenovia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyenovia has no effect on the direction of Bio Path i.e., Bio Path and Eyenovia go up and down completely randomly.
Pair Corralation between Bio Path and Eyenovia
Given the investment horizon of 90 days Bio Path Holdings is expected to generate 0.54 times more return on investment than Eyenovia. However, Bio Path Holdings is 1.84 times less risky than Eyenovia. It trades about -0.03 of its potential returns per unit of risk. Eyenovia is currently generating about -0.13 per unit of risk. If you would invest 99.00 in Bio Path Holdings on August 30, 2024 and sell it today you would lose (22.00) from holding Bio Path Holdings or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Path Holdings vs. Eyenovia
Performance |
| Timeline |
| Bio Path Holdings |
| Eyenovia |
Bio Path and Eyenovia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Path and Eyenovia
The main advantage of trading using opposite Bio Path and Eyenovia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Path position performs unexpectedly, Eyenovia 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 Eyenovia will offset losses from the drop in Eyenovia's long position.| Bio Path vs. Capricor Therapeutics | Bio Path vs. NextCure | Bio Path vs. Pulmatrix | Bio Path vs. Crinetics Pharmaceuticals |
| Eyenovia vs. Reviva Pharmaceuticals Holdings | Eyenovia vs. Cidara Therapeutics | Eyenovia vs. Fortress Biotech | Eyenovia vs. Reviva Pharmaceuticals Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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