Correlation Between Augmedix and Biofrontera Warrants

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

By analyzing existing cross correlation between Augmedix and Biofrontera Warrants, you can compare the effects of market volatilities on Augmedix and Biofrontera Warrants 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 Biofrontera Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Augmedix and Biofrontera Warrants.

Diversification Opportunities for Augmedix and Biofrontera Warrants

0.38

Correlation Coefficient

Augmedix  Biofrontera Warrants

Weak diversification

The 3 months correlation between Augmedix and Biofrontera is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Augmedix and Biofrontera Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofrontera Warrants 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 Biofrontera Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofrontera Warrants has no effect on the direction of Augmedix i.e., Augmedix and Biofrontera Warrants go up and down completely randomly.

Pair Corralation between Augmedix and Biofrontera Warrants

If you would invest  5.15  in Biofrontera Warrants on September 20, 2024 and sell it today you would earn a total of  3.85  from holding Biofrontera Warrants or generate 74.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Augmedix  vs.  Biofrontera Warrants

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.

Biofrontera Warrants

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Biofrontera Warrants are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, Biofrontera Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Augmedix and Biofrontera Warrants

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

The idea behind Augmedix and Biofrontera Warrants 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.

Check out your portfolio center.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.