Correlation Between BiOasis Technologies and Axim Biotechnologies

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

By analyzing existing cross correlation between biOasis Technologies and Axim Biotechnologies, you can compare the effects of market volatilities on BiOasis Technologies and Axim Biotechnologies 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 BiOasis Technologies with a short position of Axim Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BiOasis Technologies and Axim Biotechnologies.

Diversification Opportunities for BiOasis Technologies and Axim Biotechnologies

0.15

Correlation Coefficient

BiOasis Technologies  Axim Biotechnologies

Average diversification

The 3 months correlation between BiOasis and Axim is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Axim Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axim Biotechnologies and BiOasis 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 biOasis Technologies are associated (or correlated) with Axim Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axim Biotechnologies has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Axim Biotechnologies go up and down completely randomly.

Pair Corralation between BiOasis Technologies and Axim Biotechnologies

Assuming the 90 days horizon biOasis Technologies is expected to generate 2.59 times more return on investment than Axim Biotechnologies. However, BiOasis Technologies is 2.59 times more volatile than Axim Biotechnologies. It trades about 0.14 of its potential returns per unit of risk. Axim Biotechnologies is currently generating about 0.1 per unit of risk. If you would invest  0.01  in biOasis Technologies on December 28, 2024 and sell it today you would earn a total of  0.03  from holding biOasis Technologies or generate 300.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

biOasis Technologies  vs.  Axim Biotechnologies

biOasis Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in biOasis Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BiOasis Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Axim Biotechnologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Axim Biotechnologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Axim Biotechnologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BiOasis Technologies and Axim Biotechnologies

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

The idea behind biOasis Technologies and Axim Biotechnologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.