Correlation Between BioSig Technologies, and BAXALTA

Can any of the company-specific risk be diversified away by investing in both BioSig Technologies, and BAXALTA 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 BAXALTA 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 BAXALTA INC 4, you can compare the effects of market volatilities on BioSig Technologies, and BAXALTA 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 BAXALTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioSig Technologies, and BAXALTA.

Diversification Opportunities for BioSig Technologies, and BAXALTA

-0.51

Correlation Coefficient

BioSig Technologies,  BAXALTA

Excellent diversification

The 3 months correlation between BioSig and BAXALTA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and BAXALTA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXALTA INC 4 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 BAXALTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXALTA INC 4 has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and BAXALTA go up and down completely randomly.

Pair Corralation between BioSig Technologies, and BAXALTA

Given the investment horizon of 90 days BioSig Technologies, Common is expected to under-perform the BAXALTA. In addition to that, BioSig Technologies, is 112.21 times more volatile than BAXALTA INC 4. It trades about -0.1 of its total potential returns per unit of risk. BAXALTA INC 4 is currently generating about -0.03 per unit of volatility. If you would invest  9,955  in BAXALTA INC 4 on December 29, 2024 and sell it today you would lose (12.00) from holding BAXALTA INC 4 or give up 0.12% of portfolio value over 90 days.

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

BioSig Technologies, Common  vs.  BAXALTA INC 4

BioSig Technologies,

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioSig Technologies, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BAXALTA INC 4

Risk-Adjusted Performance

Very Weak

Over the last 90 days BAXALTA INC 4 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BAXALTA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BioSig Technologies, and BAXALTA

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

The idea behind BioSig Technologies, Common and BAXALTA INC 4 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.