Correlation Between Biocept and Intelligent Bio

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

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

Diversification Opportunities for Biocept and Intelligent Bio

0.0

Correlation Coefficient

Biocept  Intelligent Bio

Pay attention - limited upside

The 3 months correlation between Biocept and Intelligent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biocept 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 Biocept 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 Biocept 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 Biocept i.e., Biocept and Intelligent Bio go up and down completely randomly.

Pair Corralation between Biocept and Intelligent Bio

If you would invest  160.00  in Intelligent Bio Solutions on November 29, 2024 and sell it today you would earn a total of  43.00  from holding Intelligent Bio Solutions or generate 26.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Biocept  vs.  Intelligent Bio Solutions

Biocept

Risk-Adjusted Performance

Very Weak

Over the last 90 days Biocept has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Biocept is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Intelligent Bio Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biocept and Intelligent Bio

The main advantage of trading using opposite Biocept and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocept 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 Biocept 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.