Correlation Between BiOasis Technologies and Biotron

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

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

Diversification Opportunities for BiOasis Technologies and Biotron

-0.36

Correlation Coefficient

BiOasis Technologies  Biotron

Very good diversification

The 3 months correlation between BiOasis and Biotron is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Biotron Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotron Limited and BiOasis 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 biOasis Technologies are associated (or correlated) with Biotron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotron Limited has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Biotron go up and down completely randomly.

Pair Corralation between BiOasis Technologies and Biotron

Assuming the 90 days horizon BiOasis Technologies is expected to generate 38.54 times less return on investment than Biotron. But when comparing it to its historical volatility, biOasis Technologies is 6.41 times less risky than Biotron. It trades about 0.03 of its potential returns per unit of risk. Biotron Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.27  in Biotron Limited on May 4, 2025 and sell it today you would earn a total of  0.73  from holding Biotron Limited or generate 270.37% return on investment over 90 days.

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

biOasis Technologies  vs.  Biotron Limited

biOasis Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in biOasis Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BiOasis Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Biotron Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Biotron Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Biotron reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BiOasis Technologies and Biotron

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

The idea behind biOasis Technologies and Biotron Limited 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.