Correlation Between Mainz Biomed and Applied DNA
Can any of the company-specific risk be diversified away by investing in both Mainz Biomed and Applied DNA 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 Mainz Biomed and Applied DNA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainz Biomed BV and Applied DNA Sciences, you can compare the effects of market volatilities on Mainz Biomed and Applied DNA 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 Mainz Biomed with a short position of Applied DNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainz Biomed and Applied DNA.
Diversification Opportunities for Mainz Biomed and Applied DNA
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainz and Applied is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mainz Biomed BV and Applied DNA Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied DNA Sciences and Mainz Biomed 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 Mainz Biomed BV are associated (or correlated) with Applied DNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied DNA Sciences has no effect on the direction of Mainz Biomed i.e., Mainz Biomed and Applied DNA go up and down completely randomly.
Pair Corralation between Mainz Biomed and Applied DNA
Given the investment horizon of 90 days Mainz Biomed BV is expected to generate 4.16 times more return on investment than Applied DNA. However, Mainz Biomed is 4.16 times more volatile than Applied DNA Sciences. It trades about 0.03 of its potential returns per unit of risk. Applied DNA Sciences is currently generating about -0.04 per unit of risk. If you would invest 698.00 in Mainz Biomed BV on November 27, 2024 and sell it today you would lose (132.00) from holding Mainz Biomed BV or give up 18.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainz Biomed BV vs. Applied DNA Sciences
Performance |
| Timeline |
| Mainz Biomed BV |
| Applied DNA Sciences |
Mainz Biomed and Applied DNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainz Biomed and Applied DNA
The main advantage of trading using opposite Mainz Biomed and Applied DNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainz Biomed position performs unexpectedly, Applied DNA 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 Applied DNA will offset losses from the drop in Applied DNA's long position.| Mainz Biomed vs. Applied DNA Sciences | Mainz Biomed vs. Neuronetics | Mainz Biomed vs. Prenetics Global | Mainz Biomed vs. Fonar |
| Applied DNA vs. Biodesix | Applied DNA vs. DarioHealth Corp | Applied DNA vs. Exagen Inc | Applied DNA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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