Correlation Between Advanced Biomedical and 89832QAD1

Can any of the company-specific risk be diversified away by investing in both Advanced Biomedical and 89832QAD1 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 Advanced Biomedical and 89832QAD1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advanced Biomedical Technologies and TFC 48, you can compare the effects of market volatilities on Advanced Biomedical and 89832QAD1 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 Advanced Biomedical with a short position of 89832QAD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Biomedical and 89832QAD1.

Diversification Opportunities for Advanced Biomedical and 89832QAD1

0.02

Correlation Coefficient

Advanced Biomedical  89832QAD1

Significant diversification

The 3 months correlation between Advanced and 89832QAD1 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Biomedical Technologi and TFC 48 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 89832QAD1 and Advanced Biomedical 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 Advanced Biomedical Technologies are associated (or correlated) with 89832QAD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 89832QAD1 has no effect on the direction of Advanced Biomedical i.e., Advanced Biomedical and 89832QAD1 go up and down completely randomly.

Pair Corralation between Advanced Biomedical and 89832QAD1

Given the investment horizon of 90 days Advanced Biomedical Technologies is expected to generate 25.47 times more return on investment than 89832QAD1. However, Advanced Biomedical is 25.47 times more volatile than TFC 48. It trades about 0.13 of its potential returns per unit of risk. TFC 48 is currently generating about 0.0 per unit of risk. If you would invest  0.01  in Advanced Biomedical Technologies on August 8, 2025 and sell it today you would earn a total of  0.01  from holding Advanced Biomedical Technologies or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Advanced Biomedical Technologi  vs.  TFC 48

Advanced Biomedical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Biomedical Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent primary indicators, Advanced Biomedical unveiled solid returns over the last few months and may actually be approaching a breakup point.

89832QAD1

Risk-Adjusted Performance

Weakest

Over the last 90 days TFC 48 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 89832QAD1 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Advanced Biomedical and 89832QAD1

The main advantage of trading using opposite Advanced Biomedical and 89832QAD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Biomedical position performs unexpectedly, 89832QAD1 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 89832QAD1 will offset losses from the drop in 89832QAD1's long position.

The idea behind Advanced Biomedical Technologies and TFC 48 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.