Correlation Between BioLife Solutions and CVRx

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

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

Diversification Opportunities for BioLife Solutions and CVRx

-0.28

Correlation Coefficient

BioLife Solutions  CVRx

Very good diversification

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

Pair Corralation between BioLife Solutions and CVRx

Given the investment horizon of 90 days BioLife Solutions is expected to generate 13.83 times less return on investment than CVRx. But when comparing it to its historical volatility, BioLife Solutions is 1.64 times less risky than CVRx. It trades about 0.01 of its potential returns per unit of risk. CVRx Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  544.00  in CVRx Inc on May 13, 2025 and sell it today you would earn a total of  180.00  from holding CVRx Inc or generate 33.09% return on investment over 90 days.

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

BioLife Solutions  vs.  CVRx Inc

BioLife Solutions

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLife Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BioLife Solutions is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

CVRx Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CVRx Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, CVRx showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioLife Solutions and CVRx

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

The idea behind BioLife Solutions and CVRx Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.