Correlation Between Interpace Biosciences and Biocept
Can any of the company-specific risk be diversified away by investing in both Interpace Biosciences 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 Interpace Biosciences and Biocept into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpace Biosciences and Biocept, you can compare the effects of market volatilities on Interpace Biosciences 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 Interpace Biosciences with a short position of Biocept. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpace Biosciences and Biocept.
Diversification Opportunities for Interpace Biosciences and Biocept
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Interpace and Biocept is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Interpace Biosciences and Biocept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocept and Interpace Biosciences 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 Interpace Biosciences 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 Interpace Biosciences i.e., Interpace Biosciences and Biocept go up and down completely randomly.
Pair Corralation between Interpace Biosciences and Biocept
If you would invest 145.00 in Biocept on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Biocept or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interpace Biosciences vs. Biocept
Performance |
| Timeline |
| Interpace Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biocept |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Interpace Biosciences and Biocept Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpace Biosciences and Biocept
The main advantage of trading using opposite Interpace Biosciences and Biocept positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpace Biosciences 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.| Interpace Biosciences vs. Intelligent Bio Solutions | Interpace Biosciences vs. bioAffinity Technologies, | Interpace Biosciences vs. Fonar | Interpace Biosciences vs. Burning Rock Biotech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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