Correlation Between Race Oncology and BioInvent International

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

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

Diversification Opportunities for Race Oncology and BioInvent International

1.0

Correlation Coefficient

Race Oncology  BioInvent International

No risk reduction

The 3 months correlation between Race and BioInvent is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Race Oncology Limited and BioInvent International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioInvent International and Race Oncology 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 Race Oncology Limited are associated (or correlated) with BioInvent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioInvent International has no effect on the direction of Race Oncology i.e., Race Oncology and BioInvent International go up and down completely randomly.

Pair Corralation between Race Oncology and BioInvent International

If you would invest  329.00  in BioInvent International AB on October 6, 2025 and sell it today you would earn a total of  0.00  from holding BioInvent International AB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	4.76%
Values	Daily Returns

Race Oncology Limited  vs.  BioInvent International AB

Race Oncology Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Race Oncology Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Race Oncology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BioInvent International

Risk-Adjusted Performance

Weakest

Over the last 90 days BioInvent International AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BioInvent International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Race Oncology and BioInvent International

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

The idea behind Race Oncology Limited and BioInvent International AB 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.