Correlation Between BioCardia and Avax Techs

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

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

Diversification Opportunities for BioCardia and Avax Techs

0.0

Correlation Coefficient

BioCardia  Avax Techs

Pay attention - limited upside

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

Pair Corralation between BioCardia and Avax Techs

If you would invest  0.00  in Avax Techs on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Avax Techs or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BioCardia  vs.  Avax Techs

BioCardia

Risk-Adjusted Performance

Very Weak

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

Avax Techs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avax Techs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Avax Techs is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BioCardia and Avax Techs

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

The idea behind BioCardia and Avax Techs 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.