Correlation Between Bone Biologics and NanoVibronix

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

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

Diversification Opportunities for Bone Biologics and NanoVibronix

0.6

Correlation Coefficient

Bone Biologics  NanoVibronix

Poor diversification

The 3 months correlation between Bone and NanoVibronix is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and NanoVibronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoVibronix and Bone Biologics 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 Bone Biologics Corp are associated (or correlated) with NanoVibronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoVibronix has no effect on the direction of Bone Biologics i.e., Bone Biologics and NanoVibronix go up and down completely randomly.

Pair Corralation between Bone Biologics and NanoVibronix

Given the investment horizon of 90 days Bone Biologics Corp is expected to under-perform the NanoVibronix. But the stock apears to be less risky and, when comparing its historical volatility, Bone Biologics Corp is 2.84 times less risky than NanoVibronix. The stock trades about -0.02 of its potential returns per unit of risk. The NanoVibronix is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  659.00  in NanoVibronix on December 30, 2024 and sell it today you would lose (282.00) from holding NanoVibronix or give up 42.79% of portfolio value over 90 days.

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

Bone Biologics Corp  vs.  NanoVibronix

Bone Biologics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bone Biologics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

NanoVibronix

Risk-Adjusted Performance

Very Weak

Over the last 90 days NanoVibronix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Bone Biologics and NanoVibronix

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

The idea behind Bone Biologics Corp and NanoVibronix 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.