Correlation Between China Dongsheng and BioAffinity Technologies,
Can any of the company-specific risk be diversified away by investing in both China Dongsheng and BioAffinity Technologies, 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 China Dongsheng and BioAffinity Technologies, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Dongsheng International and bioAffinity Technologies,, you can compare the effects of market volatilities on China Dongsheng and BioAffinity Technologies, 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 China Dongsheng with a short position of BioAffinity Technologies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Dongsheng and BioAffinity Technologies,.
Diversification Opportunities for China Dongsheng and BioAffinity Technologies,
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and BioAffinity is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Dongsheng International and bioAffinity Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bioAffinity Technologies, and China Dongsheng 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 China Dongsheng International are associated (or correlated) with BioAffinity Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bioAffinity Technologies, has no effect on the direction of China Dongsheng i.e., China Dongsheng and BioAffinity Technologies, go up and down completely randomly.
Pair Corralation between China Dongsheng and BioAffinity Technologies,
Given the investment horizon of 90 days China Dongsheng International is expected to generate 3.66 times more return on investment than BioAffinity Technologies,. However, China Dongsheng is 3.66 times more volatile than bioAffinity Technologies,. It trades about 0.07 of its potential returns per unit of risk. bioAffinity Technologies, is currently generating about -0.24 per unit of risk. If you would invest 0.17 in China Dongsheng International on October 22, 2024 and sell it today you would lose (0.04) from holding China Dongsheng International or give up 23.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Dongsheng International vs. bioAffinity Technologies,
Performance |
| Timeline |
| China Dongsheng Inte |
| bioAffinity Technologies, |
China Dongsheng and BioAffinity Technologies, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Dongsheng and BioAffinity Technologies,
The main advantage of trading using opposite China Dongsheng and BioAffinity Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Dongsheng position performs unexpectedly, BioAffinity Technologies, 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 BioAffinity Technologies, will offset losses from the drop in BioAffinity Technologies,'s long position.| China Dongsheng vs. C2E Energy | China Dongsheng vs. Tanke Biosciences | China Dongsheng vs. Supurva Healthcare Group | China Dongsheng vs. Kasten Inc |
| BioAffinity Technologies, vs. Intelligent Bio Solutions | BioAffinity Technologies, vs. T2 Biosystms | BioAffinity Technologies, vs. Precipio |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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