Correlation Between Invictus and Burning Rock
Can any of the company-specific risk be diversified away by investing in both Invictus and Burning Rock 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 Invictus and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invictus MD Strategies and Burning Rock Biotech, you can compare the effects of market volatilities on Invictus and Burning Rock 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 Invictus with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invictus and Burning Rock.
Diversification Opportunities for Invictus and Burning Rock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invictus and Burning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invictus MD Strategies and Burning Rock Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burning Rock Biotech and Invictus 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 Invictus MD Strategies are associated (or correlated) with Burning Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burning Rock Biotech has no effect on the direction of Invictus i.e., Invictus and Burning Rock go up and down completely randomly.
Pair Corralation between Invictus and Burning Rock
Given the investment horizon of 90 days Invictus MD Strategies is expected to under-perform the Burning Rock. But the stock apears to be less risky and, when comparing its historical volatility, Invictus MD Strategies is 1.31 times less risky than Burning Rock. The stock trades about -0.1 of its potential returns per unit of risk. The Burning Rock Biotech is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,060 in Burning Rock Biotech on November 2, 2024 and sell it today you would lose (2,382) from holding Burning Rock Biotech or give up 77.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.75% |
| Values | Daily Returns |
Invictus MD Strategies vs. Burning Rock Biotech
Performance |
| Timeline |
| Invictus MD Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Burning Rock Biotech |
Invictus and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invictus and Burning Rock
The main advantage of trading using opposite Invictus and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invictus position performs unexpectedly, Burning Rock 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 Burning Rock will offset losses from the drop in Burning Rock's long position.| Invictus vs. T2 Biosystms | Invictus vs. Intelligent Bio Solutions | Invictus vs. bioAffinity Technologies, | Invictus vs. Agilent Technologies |
| Burning Rock vs. Fonar | Burning Rock vs. Sera Prognostics | Burning Rock vs. Neuronetics | Burning Rock 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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