Correlation Between BioLineRx and Biomx

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

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

Diversification Opportunities for BioLineRx and Biomx

-0.51

Correlation Coefficient

BioLineRx  Biomx

Excellent diversification

The 3 months correlation between BioLineRx and Biomx is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BioLineRx and Biomx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomx Inc and BioLineRx 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 BioLineRx are associated (or correlated) with Biomx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomx Inc has no effect on the direction of BioLineRx i.e., BioLineRx and Biomx go up and down completely randomly.

Pair Corralation between BioLineRx and Biomx

Given the investment horizon of 90 days BioLineRx is expected to generate 1.66 times more return on investment than Biomx. However, BioLineRx is 1.66 times more volatile than Biomx Inc. It trades about 0.08 of its potential returns per unit of risk. Biomx Inc is currently generating about -0.07 per unit of risk. If you would invest  316.00  in BioLineRx on May 7, 2025 and sell it today you would earn a total of  73.00  from holding BioLineRx or generate 23.1% return on investment over 90 days.

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

BioLineRx  vs.  Biomx Inc

BioLineRx

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in BioLineRx are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioLineRx showed solid returns over the last few months and may actually be approaching a breakup point.

Biomx Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Biomx Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with BioLineRx and Biomx

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

The idea behind BioLineRx and Biomx 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.