Correlation Between LumiraDx and Trinity Biotech
Can any of the company-specific risk be diversified away by investing in both LumiraDx and Trinity Biotech 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 LumiraDx and Trinity Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LumiraDx and Trinity Biotech plc, you can compare the effects of market volatilities on LumiraDx and Trinity Biotech 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 LumiraDx with a short position of Trinity Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of LumiraDx and Trinity Biotech.
Diversification Opportunities for LumiraDx and Trinity Biotech
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LumiraDx and Trinity is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding LumiraDx and Trinity Biotech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Biotech plc and LumiraDx 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 LumiraDx are associated (or correlated) with Trinity Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Biotech plc has no effect on the direction of LumiraDx i.e., LumiraDx and Trinity Biotech go up and down completely randomly.
Pair Corralation between LumiraDx and Trinity Biotech
If you would invest 125.00 in Trinity Biotech plc on August 25, 2024 and sell it today you would lose (3.00) from holding Trinity Biotech plc or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 2.22% |
| Values | Daily Returns |
LumiraDx vs. Trinity Biotech plc
Performance |
| Timeline |
| LumiraDx |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Trinity Biotech plc |
LumiraDx and Trinity Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LumiraDx and Trinity Biotech
The main advantage of trading using opposite LumiraDx and Trinity Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LumiraDx position performs unexpectedly, Trinity Biotech 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 Trinity Biotech will offset losses from the drop in Trinity Biotech's long position.| LumiraDx vs. Fonar | LumiraDx vs. Burning Rock Biotech | LumiraDx vs. Sera Prognostics | LumiraDx vs. Exagen Inc |
| Trinity Biotech vs. Star Equity Holdings | Trinity Biotech vs. Standard Biotools | Trinity Biotech vs. Biodesix | Trinity Biotech vs. ENDRA Life Sciences |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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