Correlation Between Cardio Diagnostics and BioLineRx
Can any of the company-specific risk be diversified away by investing in both Cardio Diagnostics and BioLineRx 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 Cardio Diagnostics and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardio Diagnostics Holdings and BioLineRx, you can compare the effects of market volatilities on Cardio Diagnostics and BioLineRx 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 Cardio Diagnostics with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardio Diagnostics and BioLineRx.
Diversification Opportunities for Cardio Diagnostics and BioLineRx
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cardio and BioLineRx is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Cardio Diagnostics 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 Cardio Diagnostics Holdings are associated (or correlated) with BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and BioLineRx go up and down completely randomly.
Pair Corralation between Cardio Diagnostics and BioLineRx
Assuming the 90 days horizon Cardio Diagnostics Holdings is expected to generate 12.25 times more return on investment than BioLineRx. However, Cardio Diagnostics is 12.25 times more volatile than BioLineRx. It trades about 0.09 of its potential returns per unit of risk. BioLineRx is currently generating about -0.03 per unit of risk. If you would invest 7.25 in Cardio Diagnostics Holdings on November 2, 2024 and sell it today you would earn a total of 0.25 from holding Cardio Diagnostics Holdings or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.17% |
| Values | Daily Returns |
Cardio Diagnostics Holdings vs. BioLineRx
Performance |
| Timeline |
| Cardio Diagnostics |
| BioLineRx |
Cardio Diagnostics and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardio Diagnostics and BioLineRx
The main advantage of trading using opposite Cardio Diagnostics and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardio Diagnostics position performs unexpectedly, BioLineRx 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 BioLineRx will offset losses from the drop in BioLineRx's long position.| Cardio Diagnostics vs. Cardio Diagnostics Holdings | Cardio Diagnostics vs. Revelation Biosciences | Cardio Diagnostics vs. LMF Acquisition Opportunities | Cardio Diagnostics vs. OmniAb Inc |
| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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