Correlation Between Burning Rock and BioAffinity Technologies,

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

By analyzing existing cross correlation between Burning Rock Biotech and bioAffinity Technologies,, you can compare the effects of market volatilities on Burning Rock and BioAffinity Technologies, 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 Burning Rock with a short position of BioAffinity Technologies,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burning Rock and BioAffinity Technologies,.

Diversification Opportunities for Burning Rock and BioAffinity Technologies,

-0.36

Correlation Coefficient

Burning Rock  BioAffinity Technologies,

Very good diversification

The 3 months correlation between Burning and BioAffinity is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Burning Rock Biotech and bioAffinity Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bioAffinity Technologies, and Burning Rock 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 Burning Rock Biotech are associated (or correlated) with BioAffinity Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bioAffinity Technologies, has no effect on the direction of Burning Rock i.e., Burning Rock and BioAffinity Technologies, go up and down completely randomly.

Pair Corralation between Burning Rock and BioAffinity Technologies,

Considering the 90-day investment horizon Burning Rock Biotech is expected to generate 4.17 times more return on investment than BioAffinity Technologies,. However, Burning Rock is 4.17 times more volatile than bioAffinity Technologies,. It trades about 0.33 of its potential returns per unit of risk. bioAffinity Technologies, is currently generating about -0.28 per unit of risk. If you would invest  283.00  in Burning Rock Biotech on August 31, 2024 and sell it today you would earn a total of  248.00  from holding Burning Rock Biotech or generate 87.63% return on investment over 90 days.

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

Burning Rock Biotech  vs.  bioAffinity Technologies,

Burning Rock Biotech

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Burning Rock Biotech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Burning Rock reported solid returns over the last few months and may actually be approaching a breakup point.

bioAffinity Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bioAffinity Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BioAffinity Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Burning Rock and BioAffinity Technologies,

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

The idea behind Burning Rock Biotech and bioAffinity Technologies, 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 Anywhere module to track or share privately all of your investments from the convenience of any device.