Correlation Between Biostage and Bionik Laboratories
Can any of the company-specific risk be diversified away by investing in both Biostage and Bionik Laboratories 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 Biostage and Bionik Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biostage and Bionik Laboratories Corp, you can compare the effects of market volatilities on Biostage and Bionik Laboratories 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 Biostage with a short position of Bionik Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biostage and Bionik Laboratories.
Diversification Opportunities for Biostage and Bionik Laboratories
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biostage and Bionik is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Biostage and Bionik Laboratories Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionik Laboratories Corp and Biostage 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 Biostage are associated (or correlated) with Bionik Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionik Laboratories Corp has no effect on the direction of Biostage i.e., Biostage and Bionik Laboratories go up and down completely randomly.
Pair Corralation between Biostage and Bionik Laboratories
Given the investment horizon of 90 days Biostage is expected to under-perform the Bionik Laboratories. But the otc stock apears to be less risky and, when comparing its historical volatility, Biostage is 14.46 times less risky than Bionik Laboratories. The otc stock trades about -0.06 of its potential returns per unit of risk. The Bionik Laboratories Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Bionik Laboratories Corp on September 2, 2024 and sell it today you would lose (50.00) from holding Bionik Laboratories Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 7.8% |
| Values | Daily Returns |
Biostage vs. Bionik Laboratories Corp
Performance |
| Timeline |
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bionik Laboratories Corp |
Biostage and Bionik Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biostage and Bionik Laboratories
The main advantage of trading using opposite Biostage and Bionik Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biostage position performs unexpectedly, Bionik Laboratories 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 Bionik Laboratories will offset losses from the drop in Bionik Laboratories' long position.| Biostage vs. Biotron Limited | Biostage vs. biOasis Technologies | Biostage vs. Covalon Technologies | Biostage vs. Mosaic Immunoengineering |
| Bionik Laboratories vs. Tenaris SA ADR | Bionik Laboratories vs. Tianjin Capital Environmental | Bionik Laboratories vs. AKITA Drilling | Bionik Laboratories vs. Titan 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |