Correlation Between Saker Aviation and Biostage
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Biostage 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 Saker Aviation and Biostage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Biostage, you can compare the effects of market volatilities on Saker Aviation and Biostage 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 Saker Aviation with a short position of Biostage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Biostage.
Diversification Opportunities for Saker Aviation and Biostage
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saker and Biostage is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Biostage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostage and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Biostage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biostage has no effect on the direction of Saker Aviation i.e., Saker Aviation and Biostage go up and down completely randomly.
Pair Corralation between Saker Aviation and Biostage
Given the investment horizon of 90 days Saker Aviation Services is expected to generate 1.05 times more return on investment than Biostage. However, Saker Aviation is 1.05 times more volatile than Biostage. It trades about 0.06 of its potential returns per unit of risk. Biostage is currently generating about -0.06 per unit of risk. If you would invest 480.00 in Saker Aviation Services on September 2, 2024 and sell it today you would earn a total of 333.00 from holding Saker Aviation Services or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.8% |
| Values | Daily Returns |
Saker Aviation Services vs. Biostage
Performance |
| Timeline |
| Saker Aviation Services |
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Saker Aviation and Biostage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saker Aviation and Biostage
The main advantage of trading using opposite Saker Aviation and Biostage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Biostage 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 Biostage will offset losses from the drop in Biostage's long position.| Saker Aviation vs. Seychelle Environmtl | Saker Aviation vs. Energy and Water | Saker Aviation vs. One World Universe | Saker Aviation vs. Vow ASA |
| Biostage vs. Biotron Limited | Biostage vs. biOasis Technologies | Biostage vs. Covalon Technologies | Biostage vs. Mosaic Immunoengineering |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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