Correlation Between BiOasis Technologies and Medicure

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

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

Diversification Opportunities for BiOasis Technologies and Medicure

-0.28

Correlation Coefficient

BiOasis Technologies  Medicure

Very good diversification

The 3 months correlation between BiOasis and Medicure is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Medicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicure 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 Medicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicure has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Medicure go up and down completely randomly.

Pair Corralation between BiOasis Technologies and Medicure

Assuming the 90 days horizon BiOasis Technologies is expected to generate 2.05 times less return on investment than Medicure. In addition to that, BiOasis Technologies is 3.67 times more volatile than Medicure. It trades about 0.02 of its total potential returns per unit of risk. Medicure is currently generating about 0.19 per unit of volatility. If you would invest  60.00  in Medicure on May 4, 2025 and sell it today you would earn a total of  34.00  from holding Medicure or generate 56.67% 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.  Medicure

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.

Medicure

Risk-Adjusted Performance

Good

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

Pair Trading with BiOasis Technologies and Medicure

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

The idea behind biOasis Technologies and Medicure 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.