Correlation Between Fonar and Biocept
Can any of the company-specific risk be diversified away by investing in both Fonar and Biocept 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 Fonar and Biocept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and Biocept, you can compare the effects of market volatilities on Fonar and Biocept 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 Fonar with a short position of Biocept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and Biocept.
Diversification Opportunities for Fonar and Biocept
Very poor diversification
The 3 months correlation between Fonar and Biocept is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and Biocept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocept and Fonar 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 Fonar are associated (or correlated) with Biocept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocept has no effect on the direction of Fonar i.e., Fonar and Biocept go up and down completely randomly.
Pair Corralation between Fonar and Biocept
If you would invest 1,559 in Fonar on August 29, 2024 and sell it today you would earn a total of 80.00 from holding Fonar or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
Fonar vs. Biocept
Performance |
| Timeline |
| Fonar |
| Biocept |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fonar and Biocept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and Biocept
The main advantage of trading using opposite Fonar and Biocept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar position performs unexpectedly, Biocept 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 Biocept will offset losses from the drop in Biocept's long position.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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