Correlation Between BioAffinity Technologies, and Biocept

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

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

Diversification Opportunities for BioAffinity Technologies, and Biocept

0.71

Correlation Coefficient

BioAffinity Technologies,  Biocept

Poor diversification

The 3 months correlation between BioAffinity and Biocept is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies, and Biocept in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocept and BioAffinity Technologies, 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 bioAffinity Technologies, are associated (or correlated) with Biocept. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocept has no effect on the direction of BioAffinity Technologies, i.e., BioAffinity Technologies, and Biocept go up and down completely randomly.

Pair Corralation between BioAffinity Technologies, and Biocept

If you would invest  145.00  in Biocept on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Biocept or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

bioAffinity Technologies,  vs.  Biocept

bioAffinity Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bioAffinity Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Biocept

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biocept has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Biocept is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with BioAffinity Technologies, and Biocept

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

The idea behind bioAffinity Technologies, and Biocept 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.