Correlation Between Burzynski Research and Corfacts

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

By analyzing existing cross correlation between Burzynski Research and Corfacts, you can compare the effects of market volatilities on Burzynski Research and Corfacts 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 Burzynski Research with a short position of Corfacts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burzynski Research and Corfacts.

Diversification Opportunities for Burzynski Research and Corfacts

0.0

Correlation Coefficient

Burzynski Research  Corfacts

Pay attention - limited upside

The 3 months correlation between Burzynski and Corfacts is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burzynski Research and Corfacts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corfacts and Burzynski Research 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 Burzynski Research are associated (or correlated) with Corfacts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corfacts has no effect on the direction of Burzynski Research i.e., Burzynski Research and Corfacts go up and down completely randomly.

Pair Corralation between Burzynski Research and Corfacts

If you would invest  5.00  in Burzynski Research on December 30, 2024 and sell it today you would lose (2.00) from holding Burzynski Research or give up 40.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Burzynski Research  vs.  Corfacts

Burzynski Research

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Burzynski Research are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Burzynski Research reported solid returns over the last few months and may actually be approaching a breakup point.

Corfacts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corfacts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Corfacts is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Burzynski Research and Corfacts

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

The idea behind Burzynski Research and Corfacts 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.