Correlation Between ENDRA Life and Burning Rock
Can any of the company-specific risk be diversified away by investing in both ENDRA Life 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 ENDRA Life and Burning Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENDRA Life Sciences and Burning Rock Biotech, you can compare the effects of market volatilities on ENDRA Life 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 ENDRA Life with a short position of Burning Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENDRA Life and Burning Rock.
Diversification Opportunities for ENDRA Life and Burning Rock
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ENDRA and Burning is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ENDRA Life Sciences 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 ENDRA Life 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 ENDRA Life Sciences 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 ENDRA Life i.e., ENDRA Life and Burning Rock go up and down completely randomly.
Pair Corralation between ENDRA Life and Burning Rock
Given the investment horizon of 90 days ENDRA Life Sciences is expected to under-perform the Burning Rock. In addition to that, ENDRA Life is 1.27 times more volatile than Burning Rock Biotech. It trades about -0.26 of its total potential returns per unit of risk. Burning Rock Biotech is currently generating about -0.11 per unit of volatility. If you would invest 739.00 in Burning Rock Biotech on November 2, 2024 and sell it today you would lose (61.00) from holding Burning Rock Biotech or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENDRA Life Sciences vs. Burning Rock Biotech
Performance |
| Timeline |
| ENDRA Life Sciences |
| Burning Rock Biotech |
ENDRA Life and Burning Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENDRA Life and Burning Rock
The main advantage of trading using opposite ENDRA Life and Burning Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENDRA Life 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.| ENDRA Life vs. Burning Rock Biotech | ENDRA Life vs. Neuronetics | ENDRA Life vs. DarioHealth Corp | ENDRA Life vs. Sera Prognostics |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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