Correlation Between BioAffinity Technologies and Precipio

Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies and Precipio 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 Precipio 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 Precipio, you can compare the effects of market volatilities on BioAffinity Technologies and Precipio 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 Precipio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies and Precipio.

Diversification Opportunities for BioAffinity Technologies and Precipio

0.66

Correlation Coefficient

BioAffinity Technologies  Precipio

Poor diversification

The 3 months correlation between BioAffinity and Precipio is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and Precipio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipio 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 Precipio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipio has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and Precipio go up and down completely randomly.

Pair Corralation between BioAffinity Technologies and Precipio

Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to under-perform the Precipio. In addition to that, BioAffinity Technologies is 6.73 times more volatile than Precipio. It trades about -0.04 of its total potential returns per unit of risk. Precipio is currently generating about -0.03 per unit of volatility. If you would invest  623.00  in Precipio on September 17, 2024 and sell it today you would lose (40.90) from holding Precipio or give up 6.57% of portfolio value over 90 days.

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

bioAffinity Technologies Warra  vs.  Precipio

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.

Precipio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Precipio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Precipio is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BioAffinity Technologies and Precipio

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

The idea behind bioAffinity Technologies Warrant and Precipio 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.