Correlation Between Armm and BioAffinity Technologies

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

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

Diversification Opportunities for Armm and BioAffinity Technologies

0.0

Correlation Coefficient

Armm  BioAffinity Technologies

Pay attention - limited upside

The 3 months correlation between Armm and BioAffinity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Armm Inc and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Armm 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 Armm Inc are associated (or correlated) with BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Armm i.e., Armm and BioAffinity Technologies go up and down completely randomly.

Pair Corralation between Armm and BioAffinity Technologies

Given the investment horizon of 90 days Armm is expected to generate 2.19 times less return on investment than BioAffinity Technologies. But when comparing it to its historical volatility, Armm Inc is 1.17 times less risky than BioAffinity Technologies. It trades about 0.06 of its potential returns per unit of risk. bioAffinity Technologies Warrant is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  9.00  in bioAffinity Technologies Warrant on September 4, 2024 and sell it today you would earn a total of  64.00  from holding bioAffinity Technologies Warrant or generate 711.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	80.65%
Values	Daily Returns

Armm Inc  vs.  bioAffinity Technologies Warra

Armm Inc

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Armm Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Armm is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

BioAffinity Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bioAffinity Technologies Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, BioAffinity Technologies is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Armm and BioAffinity Technologies

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

The idea behind Armm Inc and bioAffinity Technologies Warrant 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.