Correlation Between Dow Jones and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and BioAffinity Technologies.
Diversification Opportunities for Dow Jones and BioAffinity Technologies
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and BioAffinity is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Dow Jones and BioAffinity Technologies
Assuming the 90 days trading horizon Dow Jones is expected to generate 85.14 times less return on investment than BioAffinity Technologies. But when comparing it to its historical volatility, Dow Jones Industrial is 85.48 times less risky than BioAffinity Technologies. It trades about 0.09 of its potential returns per unit of risk. bioAffinity Technologies Warrant is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 43.00 in bioAffinity Technologies Warrant on September 1, 2024 and sell it today you would earn a total of 29.00 from holding bioAffinity Technologies Warrant or generate 67.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.51% |
| Values | Daily Returns |
Dow Jones Industrial vs. bioAffinity Technologies Warra
Performance |
| Timeline |
Dow Jones and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
bioAffinity Technologies Warrant
Pair trading matchups for BioAffinity Technologies
Pair Trading with Dow Jones and BioAffinity Technologies
The main advantage of trading using opposite Dow Jones and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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' long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. AAP Inc | BioAffinity Technologies vs. Discount Print USA | BioAffinity Technologies vs. China Dongsheng 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |