Correlation Between BioLife Sciences and Bionano Genomics

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

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

Diversification Opportunities for BioLife Sciences and Bionano Genomics

0.0

Correlation Coefficient

BioLife Sciences  Bionano Genomics

Pay attention - limited upside

The 3 months correlation between BioLife and Bionano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Sciences and Bionano Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bionano Genomics and BioLife Sciences 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 BioLife Sciences are associated (or correlated) with Bionano Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bionano Genomics has no effect on the direction of BioLife Sciences i.e., BioLife Sciences and Bionano Genomics go up and down completely randomly.

Pair Corralation between BioLife Sciences and Bionano Genomics

If you would invest  0.01  in BioLife Sciences on September 12, 2024 and sell it today you would earn a total of  0.00  from holding BioLife Sciences or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

BioLife Sciences  vs.  Bionano Genomics

BioLife Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bionano Genomics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bionano Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BioLife Sciences and Bionano Genomics

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

The idea behind BioLife Sciences and Bionano Genomics 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.