Correlation Between Biostage and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Biostage and Saker Aviation 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 Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biostage and Saker Aviation Services, you can compare the effects of market volatilities on Biostage and Saker Aviation 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 Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biostage and Saker Aviation.
Diversification Opportunities for Biostage and Saker Aviation
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Biostage and Saker is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Biostage and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services 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 Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Biostage i.e., Biostage and Saker Aviation go up and down completely randomly.
Pair Corralation between Biostage and Saker Aviation
Given the investment horizon of 90 days Biostage is expected to under-perform the Saker Aviation. But the otc stock apears to be less risky and, when comparing its historical volatility, Biostage is 1.05 times less risky than Saker Aviation. The otc stock trades about -0.06 of its potential returns per unit of risk. The Saker Aviation Services is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 480.00 in Saker Aviation Services on September 2, 2024 and sell it today you would earn a total of 333.00 from holding Saker Aviation Services or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.8% |
| Values | Daily Returns |
Biostage vs. Saker Aviation Services
Performance |
| Timeline |
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Saker Aviation Services |
Biostage and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biostage and Saker Aviation
The main advantage of trading using opposite Biostage and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biostage position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Biostage vs. Biotron Limited | Biostage vs. biOasis Technologies | Biostage vs. Covalon Technologies | Biostage vs. Mosaic Immunoengineering |
| Saker Aviation vs. Seychelle Environmtl | Saker Aviation vs. Energy and Water | Saker Aviation vs. One World Universe | Saker Aviation vs. Vow ASA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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