Correlation Between Bionik Laboratories and Akros Monthly

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

By analyzing existing cross correlation between Bionik Laboratories Corp and Akros Monthly Payout, you can compare the effects of market volatilities on Bionik Laboratories and Akros Monthly 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 Bionik Laboratories with a short position of Akros Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bionik Laboratories and Akros Monthly.

Diversification Opportunities for Bionik Laboratories and Akros Monthly

-0.41

Correlation Coefficient

Bionik Laboratories  Akros Monthly

Very good diversification

The 3 months correlation between Bionik and Akros is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bionik Laboratories Corp and Akros Monthly Payout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akros Monthly Payout and Bionik Laboratories 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 Bionik Laboratories Corp are associated (or correlated) with Akros Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akros Monthly Payout has no effect on the direction of Bionik Laboratories i.e., Bionik Laboratories and Akros Monthly go up and down completely randomly.

Pair Corralation between Bionik Laboratories and Akros Monthly

Given the investment horizon of 90 days Bionik Laboratories Corp is expected to generate 135.89 times more return on investment than Akros Monthly. However, Bionik Laboratories is 135.89 times more volatile than Akros Monthly Payout. It trades about 0.13 of its potential returns per unit of risk. Akros Monthly Payout is currently generating about -0.02 per unit of risk. If you would invest  0.00  in Bionik Laboratories Corp on December 28, 2024 and sell it today you would earn a total of  0.01  from holding Bionik Laboratories Corp or generate 9.223372036854776E16% return on investment over 90 days.

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

Bionik Laboratories Corp  vs.  Akros Monthly Payout

Bionik Laboratories Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bionik Laboratories Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating forward-looking signals, Bionik Laboratories disclosed solid returns over the last few months and may actually be approaching a breakup point.

Akros Monthly Payout

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akros Monthly Payout has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Akros Monthly is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bionik Laboratories and Akros Monthly

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

The idea behind Bionik Laboratories Corp and Akros Monthly Payout 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.