Correlation Between WORK Medical and Biotricity
Can any of the company-specific risk be diversified away by investing in both WORK Medical and Biotricity 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 WORK Medical and Biotricity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WORK Medical Technology and Biotricity, you can compare the effects of market volatilities on WORK Medical and Biotricity 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 WORK Medical with a short position of Biotricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of WORK Medical and Biotricity.
Diversification Opportunities for WORK Medical and Biotricity
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WORK and Biotricity is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding WORK Medical Technology and Biotricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotricity and WORK Medical 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 WORK Medical Technology are associated (or correlated) with Biotricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotricity has no effect on the direction of WORK Medical i.e., WORK Medical and Biotricity go up and down completely randomly.
Pair Corralation between WORK Medical and Biotricity
Considering the 90-day investment horizon WORK Medical Technology is expected to generate 0.95 times more return on investment than Biotricity. However, WORK Medical Technology is 1.05 times less risky than Biotricity. It trades about 0.11 of its potential returns per unit of risk. Biotricity is currently generating about -0.06 per unit of risk. If you would invest 360.00 in WORK Medical Technology on September 2, 2024 and sell it today you would earn a total of 187.00 from holding WORK Medical Technology or generate 51.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 16.87% |
| Values | Daily Returns |
WORK Medical Technology vs. Biotricity
Performance |
| Timeline |
| WORK Medical Technology |
| Biotricity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WORK Medical and Biotricity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WORK Medical and Biotricity
The main advantage of trading using opposite WORK Medical and Biotricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WORK Medical position performs unexpectedly, Biotricity 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 Biotricity will offset losses from the drop in Biotricity's long position.| WORK Medical vs. Iridium Communications | WORK Medical vs. Radcom | WORK Medical vs. Japan Tobacco ADR | WORK Medical vs. Turning Point Brands |
| Biotricity vs. CVRx Inc | Biotricity vs. Bone Biologics Corp | Biotricity vs. Delcath Systems | Biotricity vs. Heart Test Laboratories |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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