Correlation Between BioMark Diagnostics and BioNexus Gene

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

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

Diversification Opportunities for BioMark Diagnostics and BioNexus Gene

-0.21

Correlation Coefficient

BioMark Diagnostics  BioNexus Gene

Very good diversification

The 3 months correlation between BioMark and BioNexus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding BioMark Diagnostics and BioNexus Gene Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNexus Gene Lab and BioMark Diagnostics 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 BioMark Diagnostics are associated (or correlated) with BioNexus Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNexus Gene Lab has no effect on the direction of BioMark Diagnostics i.e., BioMark Diagnostics and BioNexus Gene go up and down completely randomly.

Pair Corralation between BioMark Diagnostics and BioNexus Gene

Assuming the 90 days horizon BioMark Diagnostics is expected to under-perform the BioNexus Gene. But the otc stock apears to be less risky and, when comparing its historical volatility, BioMark Diagnostics is 1.86 times less risky than BioNexus Gene. The otc stock trades about -0.03 of its potential returns per unit of risk. The BioNexus Gene Lab is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  569.00  in BioNexus Gene Lab on July 6, 2025 and sell it today you would lose (40.00) from holding BioNexus Gene Lab or give up 7.03% of portfolio value over 90 days.

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

BioMark Diagnostics  vs.  BioNexus Gene Lab

BioMark Diagnostics

Risk-Adjusted Performance

Weakest

Over the last 90 days BioMark Diagnostics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

BioNexus Gene Lab

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BioNexus Gene Lab are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, BioNexus Gene exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioMark Diagnostics and BioNexus Gene

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

The idea behind BioMark Diagnostics and BioNexus Gene Lab 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.