Correlation Between Therasense and Biostage
Can any of the company-specific risk be diversified away by investing in both Therasense 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 Therasense and Biostage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Therasense and Biostage, you can compare the effects of market volatilities on Therasense 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 Therasense with a short position of Biostage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Therasense and Biostage.
Diversification Opportunities for Therasense and Biostage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Therasense and Biostage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Therasense and Biostage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostage and Therasense 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 Therasense 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 Therasense i.e., Therasense and Biostage go up and down completely randomly.
Pair Corralation between Therasense and Biostage
If you would invest 420.00 in Biostage on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Biostage or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Therasense vs. Biostage
Performance |
| Timeline |
| Therasense |
| Biostage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Therasense and Biostage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Therasense and Biostage
The main advantage of trading using opposite Therasense and Biostage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Therasense 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.| Therasense vs. GB Sciences | Therasense vs. Scisparc | Therasense vs. Creative Medical Technology | Therasense vs. Regen BioPharma |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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