Correlation Between Bio View and Intercure

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

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

Diversification Opportunities for Bio View and Intercure

-0.12

Correlation Coefficient

Bio View  Intercure

Good diversification

The 3 months correlation between Bio and Intercure is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bio View and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Bio View 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 Bio View are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Bio View i.e., Bio View and Intercure go up and down completely randomly.

Pair Corralation between Bio View and Intercure

Assuming the 90 days trading horizon Bio View is expected to generate 1.48 times more return on investment than Intercure. However, Bio View is 1.48 times more volatile than Intercure. It trades about 0.03 of its potential returns per unit of risk. Intercure is currently generating about -0.31 per unit of risk. If you would invest  2,600  in Bio View on September 4, 2024 and sell it today you would earn a total of  50.00  from holding Bio View or generate 1.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bio View  vs.  Intercure

Bio View

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bio View are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bio View may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Intercure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intercure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bio View and Intercure

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

The idea behind Bio View and Intercure 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.