Correlation Between Biovaxys Technology and Axim Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Biovaxys Technology and Axim Biotechnologies 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 Biovaxys Technology and Axim Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biovaxys Technology Corp and Axim Biotechnologies, you can compare the effects of market volatilities on Biovaxys Technology and Axim Biotechnologies 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 Biovaxys Technology with a short position of Axim Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biovaxys Technology and Axim Biotechnologies.
Diversification Opportunities for Biovaxys Technology and Axim Biotechnologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biovaxys and Axim is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Biovaxys Technology Corp and Axim Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axim Biotechnologies and Biovaxys Technology 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 Biovaxys Technology Corp are associated (or correlated) with Axim Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axim Biotechnologies has no effect on the direction of Biovaxys Technology i.e., Biovaxys Technology and Axim Biotechnologies go up and down completely randomly.
Pair Corralation between Biovaxys Technology and Axim Biotechnologies
Assuming the 90 days horizon Biovaxys Technology Corp is expected to under-perform the Axim Biotechnologies. But the otc stock apears to be less risky and, when comparing its historical volatility, Biovaxys Technology Corp is 3.44 times less risky than Axim Biotechnologies. The otc stock trades about -0.1 of its potential returns per unit of risk. The Axim Biotechnologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.20 in Axim Biotechnologies on November 3, 2024 and sell it today you would earn a total of 0.20 from holding Axim Biotechnologies or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biovaxys Technology Corp vs. Axim Biotechnologies
Performance |
| Timeline |
| Biovaxys Technology Corp |
| Axim Biotechnologies |
Biovaxys Technology and Axim Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biovaxys Technology and Axim Biotechnologies
The main advantage of trading using opposite Biovaxys Technology and Axim Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biovaxys Technology position performs unexpectedly, Axim Biotechnologies 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 Axim Biotechnologies will offset losses from the drop in Axim Biotechnologies' long position.| Biovaxys Technology vs. Biotron Limited | Biovaxys Technology vs. biOasis Technologies | Biovaxys Technology vs. Covalon Technologies | Biovaxys Technology vs. Mosaic Immunoengineering |
| Axim Biotechnologies vs. Cellectis SA | Axim Biotechnologies vs. Biotron Limited | Axim Biotechnologies vs. Regenicin | Axim Biotechnologies vs. biOasis Technologies |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |