Correlation Between Biodesix and Intelligent Bio

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

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

Diversification Opportunities for Biodesix and Intelligent Bio

0.41

Correlation Coefficient

Biodesix  Intelligent Bio

Very weak diversification

The 3 months correlation between Biodesix and Intelligent is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Biodesix and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions and Biodesix 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 Biodesix are associated (or correlated) with Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Biodesix i.e., Biodesix and Intelligent Bio go up and down completely randomly.

Pair Corralation between Biodesix and Intelligent Bio

Given the investment horizon of 90 days Biodesix is expected to generate 0.71 times more return on investment than Intelligent Bio. However, Biodesix is 1.42 times less risky than Intelligent Bio. It trades about -0.07 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.09 per unit of risk. If you would invest  180.00  in Biodesix on September 17, 2024 and sell it today you would lose (41.50) from holding Biodesix or give up 23.06% of portfolio value over 90 days.

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

Biodesix  vs.  Intelligent Bio Solutions

Biodesix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biodesix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intelligent Bio Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intelligent Bio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Biodesix and Intelligent Bio

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

The idea behind Biodesix and Intelligent Bio Solutions 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 Stocks Directory module to find actively traded stocks across global markets.