Correlation Between Rapid Micro and Bone Biologics
Can any of the company-specific risk be diversified away by investing in both Rapid Micro and Bone Biologics 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 Rapid Micro and Bone Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rapid Micro Biosystems and Bone Biologics Corp, you can compare the effects of market volatilities on Rapid Micro and Bone Biologics 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 Rapid Micro with a short position of Bone Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rapid Micro and Bone Biologics.
Diversification Opportunities for Rapid Micro and Bone Biologics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rapid and Bone is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rapid Micro Biosystems and Bone Biologics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bone Biologics Corp and Rapid Micro 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 Rapid Micro Biosystems are associated (or correlated) with Bone Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bone Biologics Corp has no effect on the direction of Rapid Micro i.e., Rapid Micro and Bone Biologics go up and down completely randomly.
Pair Corralation between Rapid Micro and Bone Biologics
Given the investment horizon of 90 days Rapid Micro Biosystems is expected to generate 0.57 times more return on investment than Bone Biologics. However, Rapid Micro Biosystems is 1.74 times less risky than Bone Biologics. It trades about 0.05 of its potential returns per unit of risk. Bone Biologics Corp is currently generating about -0.16 per unit of risk. If you would invest 107.00 in Rapid Micro Biosystems on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Rapid Micro Biosystems or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rapid Micro Biosystems vs. Bone Biologics Corp
Performance |
| Timeline |
| Rapid Micro Biosystems |
| Bone Biologics Corp |
Rapid Micro and Bone Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rapid Micro and Bone Biologics
The main advantage of trading using opposite Rapid Micro and Bone Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rapid Micro position performs unexpectedly, Bone Biologics 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 Bone Biologics will offset losses from the drop in Bone Biologics' long position.| Rapid Micro vs. Rxsight | Rapid Micro vs. Axogen Inc | Rapid Micro vs. Treace Medical Concepts | Rapid Micro vs. Pulmonx Corp |
| Bone Biologics vs. Bluejay Diagnostics | Bone Biologics vs. Nuwellis | Bone Biologics vs. Heart Test Laboratories | Bone Biologics vs. Tivic Health Systems |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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