Correlation Between Evogene and BioLineRx
Can any of the company-specific risk be diversified away by investing in both Evogene 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 Evogene and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evogene and BioLineRx, you can compare the effects of market volatilities on Evogene 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 Evogene with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evogene and BioLineRx.
Diversification Opportunities for Evogene and BioLineRx
Very weak diversification
The 3 months correlation between Evogene and BioLineRx is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Evogene and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Evogene 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 Evogene 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 Evogene i.e., Evogene and BioLineRx go up and down completely randomly.
Pair Corralation between Evogene and BioLineRx
Given the investment horizon of 90 days Evogene is expected to generate 0.35 times more return on investment than BioLineRx. However, Evogene is 2.86 times less risky than BioLineRx. It trades about -0.21 of its potential returns per unit of risk. BioLineRx is currently generating about -0.39 per unit of risk. If you would invest 190.00 in Evogene on November 4, 2024 and sell it today you would lose (33.00) from holding Evogene or give up 17.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evogene vs. BioLineRx
Performance |
| Timeline |
| Evogene |
| BioLineRx |
Evogene and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evogene and BioLineRx
The main advantage of trading using opposite Evogene and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evogene 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.| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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