Correlation Between Sayona Mining and Bio Gene
Can any of the company-specific risk be diversified away by investing in both Sayona Mining and Bio Gene 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 Sayona Mining and Bio Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sayona Mining and Bio Gene Technology, you can compare the effects of market volatilities on Sayona Mining and Bio Gene 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 Sayona Mining with a short position of Bio Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sayona Mining and Bio Gene.
Diversification Opportunities for Sayona Mining and Bio Gene
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sayona and Bio is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sayona Mining and Bio Gene Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Gene Technology and Sayona Mining 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 Sayona Mining are associated (or correlated) with Bio Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Gene Technology has no effect on the direction of Sayona Mining i.e., Sayona Mining and Bio Gene go up and down completely randomly.
Pair Corralation between Sayona Mining and Bio Gene
Assuming the 90 days trading horizon Sayona Mining is expected to under-perform the Bio Gene. But the stock apears to be less risky and, when comparing its historical volatility, Sayona Mining is 4.78 times less risky than Bio Gene. The stock trades about -0.27 of its potential returns per unit of risk. The Bio Gene Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4.30 in Bio Gene Technology on November 3, 2024 and sell it today you would earn a total of 0.60 from holding Bio Gene Technology or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sayona Mining vs. Bio Gene Technology
Performance |
| Timeline |
| Sayona Mining |
| Bio Gene Technology |
Sayona Mining and Bio Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sayona Mining and Bio Gene
The main advantage of trading using opposite Sayona Mining and Bio Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sayona Mining position performs unexpectedly, Bio Gene 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 Bio Gene will offset losses from the drop in Bio Gene's long position.| Sayona Mining vs. The Environmental Group | Sayona Mining vs. Retail Food Group | Sayona Mining vs. MotorCycle Holdings | Sayona Mining vs. Bluescope Steel |
| Bio Gene vs. Sonic Healthcare | Bio Gene vs. Autosports Group | Bio Gene vs. Hutchison Telecommunications | Bio Gene vs. Beam Communications Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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