Correlation Between Intelligent Bio and Burning Rock
Can any of the company-specific risk be diversified away by investing in both Intelligent Bio 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 Intelligent Bio and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelligent Bio Solutions and Burning Rock Biotech, you can compare the effects of market volatilities on Intelligent Bio 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 Intelligent Bio with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelligent Bio and Burning Rock.
Diversification Opportunities for Intelligent Bio and Burning Rock
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intelligent and Burning is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intelligent Bio Solutions 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 Intelligent Bio 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 Intelligent Bio Solutions 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 Intelligent Bio i.e., Intelligent Bio and Burning Rock go up and down completely randomly.
Pair Corralation between Intelligent Bio and Burning Rock
Given the investment horizon of 90 days Intelligent Bio Solutions is expected to under-perform the Burning Rock. But the stock apears to be less risky and, when comparing its historical volatility, Intelligent Bio Solutions is 1.08 times less risky than Burning Rock. The stock trades about -0.01 of its potential returns per unit of risk. The Burning Rock Biotech is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 715.00 in Burning Rock Biotech on August 29, 2024 and sell it today you would lose (184.00) from holding Burning Rock Biotech or give up 25.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intelligent Bio Solutions vs. Burning Rock Biotech
Performance |
| Timeline |
| Intelligent Bio Solutions |
| Burning Rock Biotech |
Intelligent Bio and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelligent Bio and Burning Rock
The main advantage of trading using opposite Intelligent Bio and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelligent Bio 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.| Intelligent Bio vs. Alta Equipment Group | Intelligent Bio vs. US Global Investors | Intelligent Bio vs. Waste Management | Intelligent Bio vs. FTAI Aviation Ltd |
| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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