Correlation Between SenesTech and BioMark Diagnostics

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

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

Diversification Opportunities for SenesTech and BioMark Diagnostics

0.7

Correlation Coefficient

SenesTech  BioMark Diagnostics

Poor diversification

The 3 months correlation between SenesTech and BioMark is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and BioMark Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioMark Diagnostics and SenesTech 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 SenesTech are associated (or correlated) with BioMark Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioMark Diagnostics has no effect on the direction of SenesTech i.e., SenesTech and BioMark Diagnostics go up and down completely randomly.

Pair Corralation between SenesTech and BioMark Diagnostics

Given the investment horizon of 90 days SenesTech is expected to generate 1.24 times more return on investment than BioMark Diagnostics. However, SenesTech is 1.24 times more volatile than BioMark Diagnostics. It trades about 0.23 of its potential returns per unit of risk. BioMark Diagnostics is currently generating about 0.13 per unit of risk. If you would invest  222.00  in SenesTech on May 1, 2025 and sell it today you would earn a total of  296.00  from holding SenesTech or generate 133.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

SenesTech  vs.  BioMark Diagnostics

SenesTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, SenesTech unveiled solid returns over the last few months and may actually be approaching a breakup point.

BioMark Diagnostics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioMark Diagnostics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, BioMark Diagnostics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SenesTech and BioMark Diagnostics

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

The idea behind SenesTech and BioMark Diagnostics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.