Correlation Between Biodesix and Prenetics Global

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

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

Diversification Opportunities for Biodesix and Prenetics Global

0.39

Correlation Coefficient

Biodesix  Prenetics Global

Weak diversification

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

Pair Corralation between Biodesix and Prenetics Global

Given the investment horizon of 90 days Biodesix is expected to under-perform the Prenetics Global. In addition to that, Biodesix is 1.62 times more volatile than Prenetics Global. It trades about -0.23 of its total potential returns per unit of risk. Prenetics Global is currently generating about -0.17 per unit of volatility. If you would invest  580.00  in Prenetics Global on December 31, 2024 and sell it today you would lose (180.00) from holding Prenetics Global or give up 31.03% of portfolio value over 90 days.

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

Biodesix  vs.  Prenetics Global

Biodesix

Risk-Adjusted Performance

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 May 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Prenetics Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prenetics Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Biodesix and Prenetics Global

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

The idea behind Biodesix and Prenetics Global 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.