Correlation Between Kamada and BioLineRx

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

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

Diversification Opportunities for Kamada and BioLineRx

0.11

Correlation Coefficient

Kamada  BioLineRx

Average diversification

The 3 months correlation between Kamada and BioLineRx is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Kamada 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 Kamada are associated (or correlated) with BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of Kamada i.e., Kamada and BioLineRx go up and down completely randomly.

Pair Corralation between Kamada and BioLineRx

Given the investment horizon of 90 days Kamada is expected to generate 3.51 times less return on investment than BioLineRx. But when comparing it to its historical volatility, Kamada is 3.29 times less risky than BioLineRx. It trades about 0.03 of its potential returns per unit of risk. BioLineRx is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  368.00  in BioLineRx on May 27, 2025 and sell it today you would earn a total of  6.00  from holding BioLineRx or generate 1.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Kamada  vs.  BioLineRx

Kamada

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kamada are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Kamada is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BioLineRx

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioLineRx are ranked lower than 2 (%) 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.

Pair Trading with Kamada and BioLineRx

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

The idea behind Kamada and BioLineRx 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.