Correlation Between HLS Therapeutics and Bionoid Pharma
Can any of the company-specific risk be diversified away by investing in both HLS Therapeutics and Bionoid Pharma 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 HLS Therapeutics and Bionoid Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HLS Therapeutics and Bionoid Pharma, you can compare the effects of market volatilities on HLS Therapeutics and Bionoid Pharma 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 HLS Therapeutics with a short position of Bionoid Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLS Therapeutics and Bionoid Pharma.
Diversification Opportunities for HLS Therapeutics and Bionoid Pharma
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between HLS and Bionoid is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding HLS Therapeutics and Bionoid Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionoid Pharma and HLS Therapeutics 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 HLS Therapeutics are associated (or correlated) with Bionoid Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionoid Pharma has no effect on the direction of HLS Therapeutics i.e., HLS Therapeutics and Bionoid Pharma go up and down completely randomly.
Pair Corralation between HLS Therapeutics and Bionoid Pharma
Assuming the 90 days horizon HLS Therapeutics is expected to under-perform the Bionoid Pharma. But the pink sheet apears to be less risky and, when comparing its historical volatility, HLS Therapeutics is 4.95 times less risky than Bionoid Pharma. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Bionoid Pharma is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Bionoid Pharma on August 26, 2024 and sell it today you would lose (25.00) from holding Bionoid Pharma or give up 55.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HLS Therapeutics vs. Bionoid Pharma
Performance |
| Timeline |
| HLS Therapeutics |
| Bionoid Pharma |
HLS Therapeutics and Bionoid Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLS Therapeutics and Bionoid Pharma
The main advantage of trading using opposite HLS Therapeutics and Bionoid Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLS Therapeutics position performs unexpectedly, Bionoid Pharma 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 Bionoid Pharma will offset losses from the drop in Bionoid Pharma's long position.| HLS Therapeutics vs. Aion Therapeutic | HLS Therapeutics vs. Cannara Biotech | HLS Therapeutics vs. Knight Therapeutics | HLS Therapeutics vs. Canntab Therapeutics Limited |
| Bionoid Pharma vs. Aerofoam Metals | Bionoid Pharma vs. Zijin Mining Group | Bionoid Pharma vs. Bridgford Foods | Bionoid Pharma vs. Hf Foods Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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