Correlation Between NewAmsterdam Pharma and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both NewAmsterdam Pharma and BioAffinity Technologies 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 NewAmsterdam Pharma and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewAmsterdam Pharma and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on NewAmsterdam Pharma and BioAffinity Technologies 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 NewAmsterdam Pharma with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewAmsterdam Pharma and BioAffinity Technologies.
Diversification Opportunities for NewAmsterdam Pharma and BioAffinity Technologies
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NewAmsterdam and BioAffinity is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NewAmsterdam Pharma and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and NewAmsterdam Pharma 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 NewAmsterdam Pharma are associated (or correlated) with BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of NewAmsterdam Pharma i.e., NewAmsterdam Pharma and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between NewAmsterdam Pharma and BioAffinity Technologies
Given the investment horizon of 90 days NewAmsterdam Pharma is expected to generate 0.3 times more return on investment than BioAffinity Technologies. However, NewAmsterdam Pharma is 3.33 times less risky than BioAffinity Technologies. It trades about 0.1 of its potential returns per unit of risk. bioAffinity Technologies Warrant is currently generating about 0.01 per unit of risk. If you would invest 1,913 in NewAmsterdam Pharma on August 29, 2024 and sell it today you would earn a total of 171.00 from holding NewAmsterdam Pharma or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NewAmsterdam Pharma vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| NewAmsterdam Pharma |
| BioAffinity Technologies |
NewAmsterdam Pharma and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewAmsterdam Pharma and BioAffinity Technologies
The main advantage of trading using opposite NewAmsterdam Pharma and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewAmsterdam Pharma position performs unexpectedly, BioAffinity Technologies 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 BioAffinity Technologies will offset losses from the drop in BioAffinity Technologies' long position.| NewAmsterdam Pharma vs. Bright Minds Biosciences | NewAmsterdam Pharma vs. HP Inc | NewAmsterdam Pharma vs. Intel | NewAmsterdam Pharma vs. Chevron Corp |
| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. AAP Inc | BioAffinity Technologies vs. Discount Print USA | BioAffinity Technologies vs. HUMANA INC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |