Correlation Between BioQuest Corp and IAnthus Capital

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

By analyzing existing cross correlation between BioQuest Corp and iAnthus Capital Holdings, you can compare the effects of market volatilities on BioQuest Corp and IAnthus Capital 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 BioQuest Corp with a short position of IAnthus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioQuest Corp and IAnthus Capital.

Diversification Opportunities for BioQuest Corp and IAnthus Capital

-0.85

Correlation Coefficient

BioQuest Corp  IAnthus Capital

Pay attention - limited upside

The 3 months correlation between BioQuest and IAnthus is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding BioQuest Corp and iAnthus Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iAnthus Capital Holdings and BioQuest Corp 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 BioQuest Corp are associated (or correlated) with IAnthus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iAnthus Capital Holdings has no effect on the direction of BioQuest Corp i.e., BioQuest Corp and IAnthus Capital go up and down completely randomly.

Pair Corralation between BioQuest Corp and IAnthus Capital

Given the investment horizon of 90 days BioQuest Corp is expected to generate 0.11 times more return on investment than IAnthus Capital. However, BioQuest Corp is 8.85 times less risky than IAnthus Capital. It trades about -0.25 of its potential returns per unit of risk. iAnthus Capital Holdings is currently generating about -0.04 per unit of risk. If you would invest  112.00  in BioQuest Corp on October 9, 2024 and sell it today you would lose (12.00) from holding BioQuest Corp or give up 10.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

BioQuest Corp  vs.  iAnthus Capital Holdings

BioQuest Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioQuest Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, BioQuest Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

iAnthus Capital Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iAnthus Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with BioQuest Corp and IAnthus Capital

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

The idea behind BioQuest Corp and iAnthus Capital Holdings 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.