Correlation Between Biocardia and Marker Therapeutics

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

By analyzing existing cross correlation between Biocardia and Marker Therapeutics, you can compare the effects of market volatilities on Biocardia and Marker Therapeutics 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 Biocardia with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocardia and Marker Therapeutics.

Diversification Opportunities for Biocardia and Marker Therapeutics

-0.12

Correlation Coefficient

Biocardia  Marker Therapeutics

Good diversification

The 3 months correlation between Biocardia and Marker is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Biocardia and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Biocardia 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 Biocardia are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Biocardia i.e., Biocardia and Marker Therapeutics go up and down completely randomly.

Pair Corralation between Biocardia and Marker Therapeutics

Given the investment horizon of 90 days Biocardia is expected to generate 56.65 times less return on investment than Marker Therapeutics. But when comparing it to its historical volatility, Biocardia is 1.31 times less risky than Marker Therapeutics. It trades about 0.0 of its potential returns per unit of risk. Marker Therapeutics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  106.00  in Marker Therapeutics on October 7, 2025 and sell it today you would earn a total of  73.00  from holding Marker Therapeutics or generate 68.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Biocardia  vs.  Marker Therapeutics

Biocardia

Risk-Adjusted Performance

Weakest

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

Marker Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marker Therapeutics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating forward-looking signals, Marker Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biocardia and Marker Therapeutics

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

The idea behind Biocardia and Marker Therapeutics 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.