Correlation Between BioSig Technologies, and Beyond Air

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

Diversification Opportunities for BioSig Technologies, and Beyond Air

0.75

Correlation Coefficient

BioSig Technologies,  Beyond Air

Poor diversification

The 3 months correlation between BioSig and Beyond is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BioSig Technologies, Common and Beyond Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Air 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 Beyond Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Air has no effect on the direction of BioSig Technologies, i.e., BioSig Technologies, and Beyond Air go up and down completely randomly.

Pair Corralation between BioSig Technologies, and Beyond Air

Given the investment horizon of 90 days BioSig Technologies, Common is expected to generate 2.12 times more return on investment than Beyond Air. However, BioSig Technologies, is 2.12 times more volatile than Beyond Air. It trades about 0.24 of its potential returns per unit of risk. Beyond Air is currently generating about 0.09 per unit of risk. If you would invest  29.00  in BioSig Technologies, Common on October 10, 2024 and sell it today you would earn a total of  108.00  from holding BioSig Technologies, Common or generate 372.41% return on investment over 90 days.

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

BioSig Technologies, Common  vs.  Beyond Air

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.

Beyond Air

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Air are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady forward indicators, Beyond Air reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioSig Technologies, and Beyond Air

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

The idea behind BioSig Technologies, Common and Beyond Air 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.