Correlation Between BioSig Technologies, and Southern BancShares

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

By analyzing existing cross correlation between BioSig Technologies, Common and Southern BancShares NC, you can compare the effects of market volatilities on BioSig Technologies, and Southern BancShares 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 BioSig Technologies, with a short position of Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioSig Technologies, and Southern BancShares.

Diversification Opportunities for BioSig Technologies, and Southern BancShares

0.66

Correlation Coefficient

BioSig Technologies,  Southern BancShares

Poor diversification

The 3 months correlation between BioSig and Southern is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and Southern BancShares NC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares and BioSig Technologies, 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 BioSig Technologies, Common are associated (or correlated) with Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and Southern BancShares go up and down completely randomly.

Pair Corralation between BioSig Technologies, and Southern BancShares

Given the investment horizon of 90 days BioSig Technologies, Common is expected to generate 7.19 times more return on investment than Southern BancShares. However, BioSig Technologies, is 7.19 times more volatile than Southern BancShares NC. It trades about 0.02 of its potential returns per unit of risk. Southern BancShares NC is currently generating about 0.1 per unit of risk. If you would invest  1,160  in BioSig Technologies, Common on October 3, 2024 and sell it today you would lose (1,011) from holding BioSig Technologies, Common or give up 87.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	70.05%
Values	Daily Returns

BioSig Technologies, Common  vs.  Southern BancShares NC

BioSig Technologies,

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BioSig Technologies, Common are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, BioSig Technologies, displayed solid returns over the last few months and may actually be approaching a breakup point.

Southern BancShares

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Southern BancShares NC are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Southern BancShares exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioSig Technologies, and Southern BancShares

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

The idea behind BioSig Technologies, Common and Southern BancShares NC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.