Correlation Between Fonar and BioMark Diagnostics
Can any of the company-specific risk be diversified away by investing in both Fonar and BioMark Diagnostics 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 BioMark Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and BioMark Diagnostics, you can compare the effects of market volatilities on Fonar and BioMark Diagnostics 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 BioMark Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and BioMark Diagnostics.
Diversification Opportunities for Fonar and BioMark Diagnostics
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fonar and BioMark is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and BioMark Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioMark Diagnostics 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 BioMark Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioMark Diagnostics has no effect on the direction of Fonar i.e., Fonar and BioMark Diagnostics go up and down completely randomly.
Pair Corralation between Fonar and BioMark Diagnostics
Given the investment horizon of 90 days Fonar is expected to generate 0.51 times more return on investment than BioMark Diagnostics. However, Fonar is 1.94 times less risky than BioMark Diagnostics. It trades about 0.0 of its potential returns per unit of risk. BioMark Diagnostics is currently generating about -0.09 per unit of risk. If you would invest 1,536 in Fonar on October 24, 2024 and sell it today you would lose (16.00) from holding Fonar or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.65% |
| Values | Daily Returns |
Fonar vs. BioMark Diagnostics
Performance |
| Timeline |
| Fonar |
| BioMark Diagnostics |
Fonar and BioMark Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and BioMark Diagnostics
The main advantage of trading using opposite Fonar and BioMark Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar position performs unexpectedly, BioMark Diagnostics 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 BioMark Diagnostics will offset losses from the drop in BioMark Diagnostics' long position.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| BioMark Diagnostics vs. Spectral Med | BioMark Diagnostics vs. bioAffinity Technologies, | BioMark Diagnostics vs. Avricore Health | BioMark Diagnostics vs. DarioHealth Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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