Correlation Between Biodesix and FACT II

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

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

Diversification Opportunities for Biodesix and FACT II

0.08

Correlation Coefficient

Biodesix  FACT II

Significant diversification

The 3 months correlation between Biodesix and FACT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Biodesix and FACT II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FACT II Acquisition and Biodesix 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 Biodesix are associated (or correlated) with FACT II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FACT II Acquisition has no effect on the direction of Biodesix i.e., Biodesix and FACT II go up and down completely randomly.

Pair Corralation between Biodesix and FACT II

Given the investment horizon of 90 days Biodesix is expected to generate 2.31 times more return on investment than FACT II. However, Biodesix is 2.31 times more volatile than FACT II Acquisition. It trades about 0.01 of its potential returns per unit of risk. FACT II Acquisition is currently generating about 0.03 per unit of risk. If you would invest  47.00  in Biodesix on May 5, 2025 and sell it today you would lose (11.00) from holding Biodesix or give up 23.4% of portfolio value over 90 days.

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

Biodesix  vs.  FACT II Acquisition

Biodesix

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biodesix are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Biodesix may actually be approaching a critical reversion point that can send shares even higher in September 2025.

FACT II Acquisition

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FACT II Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting fundamental indicators, FACT II may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Biodesix and FACT II

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

The idea behind Biodesix and FACT II Acquisition 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.