Correlation Between BioLife Solutions and Cryoport

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

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

Diversification Opportunities for BioLife Solutions and Cryoport

0.34

Correlation Coefficient

BioLife Solutions  Cryoport

Weak diversification

The 3 months correlation between BioLife and Cryoport is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and Cryoport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cryoport and BioLife Solutions 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 Solutions are associated (or correlated) with Cryoport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cryoport has no effect on the direction of BioLife Solutions i.e., BioLife Solutions and Cryoport go up and down completely randomly.

Pair Corralation between BioLife Solutions and Cryoport

Given the investment horizon of 90 days BioLife Solutions is expected to generate 0.86 times more return on investment than Cryoport. However, BioLife Solutions is 1.16 times less risky than Cryoport. It trades about 0.05 of its potential returns per unit of risk. Cryoport is currently generating about 0.02 per unit of risk. If you would invest  2,428  in BioLife Solutions on September 12, 2024 and sell it today you would earn a total of  192.00  from holding BioLife Solutions or generate 7.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BioLife Solutions  vs.  Cryoport

BioLife Solutions

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLife Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, BioLife Solutions may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Cryoport

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cryoport are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Cryoport is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BioLife Solutions and Cryoport

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

The idea behind BioLife Solutions and Cryoport 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.