Correlation Between Augmedix and BriaCell Therapeutics

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

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

Diversification Opportunities for Augmedix and BriaCell Therapeutics

0.47

Correlation Coefficient

Augmedix  BriaCell Therapeutics

Very weak diversification

The 3 months correlation between Augmedix and BriaCell is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Augmedix and BriaCell Therapeutics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriaCell Therapeutics and Augmedix 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 Augmedix are associated (or correlated) with BriaCell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriaCell Therapeutics has no effect on the direction of Augmedix i.e., Augmedix and BriaCell Therapeutics go up and down completely randomly.

Pair Corralation between Augmedix and BriaCell Therapeutics

Given the investment horizon of 90 days Augmedix is expected to generate 1.1 times more return on investment than BriaCell Therapeutics. However, Augmedix is 1.1 times more volatile than BriaCell Therapeutics Corp. It trades about 0.04 of its potential returns per unit of risk. BriaCell Therapeutics Corp is currently generating about 0.0 per unit of risk. If you would invest  156.00  in Augmedix on September 20, 2024 and sell it today you would earn a total of  79.00  from holding Augmedix or generate 50.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	89.84%
Values	Daily Returns

Augmedix  vs.  BriaCell Therapeutics Corp

Augmedix

Risk-Adjusted Performance

0 of 100

OK

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

BriaCell Therapeutics

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BriaCell Therapeutics Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BriaCell Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Augmedix and BriaCell Therapeutics

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

The idea behind Augmedix and BriaCell Therapeutics Corp 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.