Correlation Between Star Equity and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Star Equity 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 Star Equity and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Star Equity 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 Star Equity with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and BioAffinity Technologies.
Diversification Opportunities for Star Equity and BioAffinity Technologies
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Star and BioAffinity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Star Equity 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 Star Equity Holdings 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 Star Equity i.e., Star Equity and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Star Equity and BioAffinity Technologies
Given the investment horizon of 90 days Star Equity Holdings is expected to under-perform the BioAffinity Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Star Equity Holdings is 6.71 times less risky than BioAffinity Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The bioAffinity Technologies Warrant is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 45.00 in bioAffinity Technologies Warrant on November 10, 2024 and sell it today you would lose (7.00) from holding bioAffinity Technologies Warrant or give up 15.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.0% |
| Values | Daily Returns |
Star Equity Holdings vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| Star Equity Holdings |
| BioAffinity Technologies |
Star Equity and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Equity and BioAffinity Technologies
The main advantage of trading using opposite Star Equity and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity 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.| Star Equity vs. Volitionrx | Star Equity vs. Biodesix | Star Equity vs. Fonar | Star Equity vs. Burning Rock Biotech |
| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. AAP Inc | BioAffinity Technologies vs. Discount Print USA | BioAffinity Technologies vs. China Dongsheng International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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