Correlation Between BioAffinity Technologies and Star Equity

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

Diversification Opportunities for BioAffinity Technologies and Star Equity

0.76

Correlation Coefficient

BioAffinity Technologies  Star Equity

Poor diversification

The 3 months correlation between BioAffinity and Star is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and Star Equity Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Equity Holdings 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 Star Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Equity Holdings has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and Star Equity go up and down completely randomly.

Pair Corralation between BioAffinity Technologies and Star Equity

Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to under-perform the Star Equity. In addition to that, BioAffinity Technologies is 4.05 times more volatile than Star Equity Holdings. It trades about -0.14 of its total potential returns per unit of risk. Star Equity Holdings is currently generating about -0.21 per unit of volatility. If you would invest  309.00  in Star Equity Holdings on September 17, 2024 and sell it today you would lose (46.00) from holding Star Equity Holdings or give up 14.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	80.0%
Values	Daily Returns

bioAffinity Technologies Warra  vs.  Star Equity Holdings

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.

Star Equity Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Star Equity Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with BioAffinity Technologies and Star Equity

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

The idea behind bioAffinity Technologies Warrant and Star Equity Holdings 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.