Correlation Between BioSig Technologies, and CONSTELLATION

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

Diversification Opportunities for BioSig Technologies, and CONSTELLATION

-0.49

Correlation Coefficient

BioSig Technologies,  CONSTELLATION

Very good diversification

The 3 months correlation between BioSig and CONSTELLATION is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and CONSTELLATION BRANDS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSTELLATION BRANDS INC 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 CONSTELLATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSTELLATION BRANDS INC has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and CONSTELLATION go up and down completely randomly.

Pair Corralation between BioSig Technologies, and CONSTELLATION

Given the investment horizon of 90 days BioSig Technologies, Common is expected to generate 33.16 times more return on investment than CONSTELLATION. However, BioSig Technologies, is 33.16 times more volatile than CONSTELLATION BRANDS INC. It trades about 0.15 of its potential returns per unit of risk. CONSTELLATION BRANDS INC is currently generating about -0.05 per unit of risk. If you would invest  35.00  in BioSig Technologies, Common on September 30, 2024 and sell it today you would earn a total of  113.00  from holding BioSig Technologies, Common or generate 322.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

BioSig Technologies, Common  vs.  CONSTELLATION BRANDS INC

BioSig Technologies,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BioSig Technologies, Common are ranked lower than 17 (%) 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.

CONSTELLATION BRANDS INC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with BioSig Technologies, and CONSTELLATION

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

The idea behind BioSig Technologies, Common and CONSTELLATION BRANDS INC 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.