Correlation Between Awakn Life and Biovaxys Technology

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

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

Diversification Opportunities for Awakn Life and Biovaxys Technology

0.39

Correlation Coefficient

Awakn Life  Biovaxys Technology

Weak diversification

The 3 months correlation between Awakn and Biovaxys is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Awakn Life Sciences and Biovaxys Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biovaxys Technology Corp and Awakn Life 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 Awakn Life Sciences are associated (or correlated) with Biovaxys Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biovaxys Technology Corp has no effect on the direction of Awakn Life i.e., Awakn Life and Biovaxys Technology go up and down completely randomly.

Pair Corralation between Awakn Life and Biovaxys Technology

Assuming the 90 days horizon Awakn Life Sciences is expected to under-perform the Biovaxys Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Awakn Life Sciences is 1.21 times less risky than Biovaxys Technology. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Biovaxys Technology Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  5.46  in Biovaxys Technology Corp on October 11, 2024 and sell it today you would lose (0.96) from holding Biovaxys Technology Corp or give up 17.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Awakn Life Sciences  vs.  Biovaxys Technology Corp

Awakn Life Sciences

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Awakn Life Sciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Awakn Life may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Biovaxys Technology Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Biovaxys Technology Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Biovaxys Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Awakn Life and Biovaxys Technology

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

The idea behind Awakn Life Sciences and Biovaxys Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.