Correlation Between Aspira Womens and BioAffinity Technologies

Can any of the company-specific risk be diversified away by investing in both Aspira Womens and BioAffinity Technologies 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 Aspira Womens and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aspira Womens Health and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Aspira Womens and BioAffinity Technologies 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 Aspira Womens with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspira Womens and BioAffinity Technologies.

Diversification Opportunities for Aspira Womens and BioAffinity Technologies

0.74

Correlation Coefficient

Aspira Womens  BioAffinity Technologies

Poor diversification

The 3 months correlation between Aspira and BioAffinity is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Aspira Womens i.e., Aspira Womens and BioAffinity Technologies go up and down completely randomly.

Pair Corralation between Aspira Womens and BioAffinity Technologies

Considering the 90-day investment horizon Aspira Womens Health is expected to under-perform the BioAffinity Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Aspira Womens Health is 1.73 times less risky than BioAffinity Technologies. The stock trades about -0.26 of its potential returns per unit of risk. The bioAffinity Technologies Warrant is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  58.00  in bioAffinity Technologies Warrant on February 15, 2025 and sell it today you would lose (44.15) from holding bioAffinity Technologies Warrant or give up 76.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.62%
Values	Daily Returns

Aspira Womens Health  vs.  bioAffinity Technologies Warra

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

BioAffinity Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days bioAffinity Technologies Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in June 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Aspira Womens and BioAffinity Technologies

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

The idea behind Aspira Womens Health and bioAffinity Technologies Warrant 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.