Correlation Between BioAffinity Technologies and Intelligent Bio

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

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

Diversification Opportunities for BioAffinity Technologies and Intelligent Bio

0.34

Correlation Coefficient

BioAffinity Technologies  Intelligent Bio

Weak diversification

The 3 months correlation between BioAffinity and Intelligent is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra 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 BioAffinity Technologies 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 bioAffinity Technologies Warrant 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 BioAffinity Technologies i.e., BioAffinity Technologies and Intelligent Bio go up and down completely randomly.

Pair Corralation between BioAffinity Technologies and Intelligent Bio

Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to under-perform the Intelligent Bio. In addition to that, BioAffinity Technologies is 2.66 times more volatile than Intelligent Bio Solutions. It trades about -0.04 of its total potential returns per unit of risk. Intelligent Bio Solutions is currently generating about -0.09 per unit of volatility. If you would invest  248.00  in Intelligent Bio Solutions on September 17, 2024 and sell it today you would lose (99.00) from holding Intelligent Bio Solutions or give up 39.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.31%
Values	Daily Returns

bioAffinity Technologies Warra  vs.  Intelligent Bio Solutions

BioAffinity Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bioAffinity Technologies Warrant 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 technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated 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 BioAffinity Technologies and Intelligent Bio

The main advantage of trading using opposite BioAffinity Technologies and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioAffinity Technologies 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 bioAffinity Technologies Warrant 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.