Correlation Between Protalix Biotherapeutics and BioLineRx

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

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

Diversification Opportunities for Protalix Biotherapeutics and BioLineRx

-0.52

Correlation Coefficient

Protalix Biotherapeutics  BioLineRx

Excellent diversification

The 3 months correlation between Protalix and BioLineRx is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Protalix Biotherapeutics 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 Protalix Biotherapeutics 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 Protalix Biotherapeutics i.e., Protalix Biotherapeutics and BioLineRx go up and down completely randomly.

Pair Corralation between Protalix Biotherapeutics and BioLineRx

Considering the 90-day investment horizon Protalix Biotherapeutics is expected to under-perform the BioLineRx. But the stock apears to be less risky and, when comparing its historical volatility, Protalix Biotherapeutics is 1.11 times less risky than BioLineRx. The stock trades about -0.12 of its potential returns per unit of risk. The BioLineRx is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  325.00  in BioLineRx on May 4, 2025 and sell it today you would earn a total of  62.00  from holding BioLineRx or generate 19.08% return on investment over 90 days.

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

Protalix Biotherapeutics  vs.  BioLineRx

Protalix Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Protalix Biotherapeutics 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 essential indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

BioLineRx

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLineRx are ranked lower than 5 (%) 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 Protalix Biotherapeutics and BioLineRx

The main advantage of trading using opposite Protalix Biotherapeutics and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics 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 Protalix Biotherapeutics 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.