Correlation Between YS Biopharma and Baudax BioInc
Can any of the company-specific risk be diversified away by investing in both YS Biopharma and Baudax BioInc 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 YS Biopharma and Baudax BioInc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YS Biopharma Co and Baudax BioInc, you can compare the effects of market volatilities on YS Biopharma and Baudax BioInc 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 YS Biopharma with a short position of Baudax BioInc. Check out your portfolio center. Please also check ongoing floating volatility patterns of YS Biopharma and Baudax BioInc.
Diversification Opportunities for YS Biopharma and Baudax BioInc
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YS Biopharma and Baudax is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding YS Biopharma Co and Baudax BioInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baudax BioInc and YS Biopharma 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 YS Biopharma Co are associated (or correlated) with Baudax BioInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baudax BioInc has no effect on the direction of YS Biopharma i.e., YS Biopharma and Baudax BioInc go up and down completely randomly.
Pair Corralation between YS Biopharma and Baudax BioInc
Allowing for the 90-day total investment horizon YS Biopharma Co is expected to generate 0.54 times more return on investment than Baudax BioInc. However, YS Biopharma Co is 1.84 times less risky than Baudax BioInc. It trades about 0.22 of its potential returns per unit of risk. Baudax BioInc is currently generating about -0.04 per unit of risk. If you would invest 43.00 in YS Biopharma Co on January 31, 2024 and sell it today you would earn a total of 34.00 from holding YS Biopharma Co or generate 79.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
YS Biopharma Co vs. Baudax BioInc
Performance |
Timeline |
YS Biopharma |
Baudax BioInc |
YS Biopharma and Baudax BioInc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YS Biopharma and Baudax BioInc
The main advantage of trading using opposite YS Biopharma and Baudax BioInc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YS Biopharma position performs unexpectedly, Baudax BioInc 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 Baudax BioInc will offset losses from the drop in Baudax BioInc's long position.YS Biopharma vs. Revelation Biosciences | YS Biopharma vs. Cardio Diagnostics Holdings | YS Biopharma vs. Biodexa Pharmaceticals | YS Biopharma vs. ZyVersa Therapeutics |
Baudax BioInc vs. Virax Biolabs Group | Baudax BioInc vs. YS Biopharma Co | Baudax BioInc vs. Neximmune | Baudax BioInc vs. Altamira Therapeutics |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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