Correlation Between Alpha Tau and BioLineRx
Can any of the company-specific risk be diversified away by investing in both Alpha Tau 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 Alpha Tau and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Tau Medical and BioLineRx, you can compare the effects of market volatilities on Alpha Tau 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 Alpha Tau with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Tau and BioLineRx.
Diversification Opportunities for Alpha Tau and BioLineRx
Pay attention - limited upside
The 3 months correlation between Alpha and BioLineRx is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Tau Medical and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Alpha Tau 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 Alpha Tau Medical 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 Alpha Tau i.e., Alpha Tau and BioLineRx go up and down completely randomly.
Pair Corralation between Alpha Tau and BioLineRx
Given the investment horizon of 90 days Alpha Tau Medical is expected to generate 0.62 times more return on investment than BioLineRx. However, Alpha Tau Medical is 1.62 times less risky than BioLineRx. It trades about 0.02 of its potential returns per unit of risk. BioLineRx is currently generating about -0.03 per unit of risk. If you would invest 376.00 in Alpha Tau Medical on November 2, 2024 and sell it today you would lose (13.00) from holding Alpha Tau Medical or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Tau Medical vs. BioLineRx
Performance |
| Timeline |
| Alpha Tau Medical |
| BioLineRx |
Alpha Tau and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Tau and BioLineRx
The main advantage of trading using opposite Alpha Tau and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Tau 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.| Alpha Tau vs. Eyenovia | Alpha Tau vs. Ocular Therapeutix | Alpha Tau vs. Tenaya Therapeutics | Alpha Tau vs. Inozyme Pharma |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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