Correlation Between Biomx and BioLineRx

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

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

Diversification Opportunities for Biomx and BioLineRx

-0.58

Correlation Coefficient

Biomx  BioLineRx

Excellent diversification

The 3 months correlation between Biomx and BioLineRx is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Biomx Inc and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Biomx 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 Biomx Inc 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 Biomx i.e., Biomx and BioLineRx go up and down completely randomly.

Pair Corralation between Biomx and BioLineRx

Given the investment horizon of 90 days Biomx Inc is expected to under-perform the BioLineRx. But the stock apears to be less risky and, when comparing its historical volatility, Biomx Inc is 1.66 times less risky than BioLineRx. The stock trades about -0.07 of its potential returns per unit of risk. The BioLineRx is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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

Biomx Inc  vs.  BioLineRx

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.

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.

Pair Trading with Biomx and BioLineRx

The main advantage of trading using opposite Biomx and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomx 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 Biomx Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.