Correlation Between Bioqual and Reitmans

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

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

Diversification Opportunities for Bioqual and Reitmans

-0.07

Correlation Coefficient

Bioqual  Reitmans

Good diversification

The 3 months correlation between Bioqual and Reitmans is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bioqual and Reitmans Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitmans Limited and Bioqual 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 Bioqual are associated (or correlated) with Reitmans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitmans Limited has no effect on the direction of Bioqual i.e., Bioqual and Reitmans go up and down completely randomly.

Pair Corralation between Bioqual and Reitmans

Given the investment horizon of 90 days Bioqual is expected to under-perform the Reitmans. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bioqual is 1.34 times less risky than Reitmans. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Reitmans Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Reitmans Limited on August 4, 2025 and sell it today you would earn a total of  5.00  from holding Reitmans Limited or generate 3.33% return on investment over 90 days.

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

Bioqual  vs.  Reitmans Limited

Bioqual

Risk-Adjusted Performance

Weakest

Over the last 90 days Bioqual has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Reitmans Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Reitmans Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Reitmans is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bioqual and Reitmans

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

The idea behind Bioqual and Reitmans 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.