Correlation Between Caredx and BioAffinity Technologies,

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

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

Diversification Opportunities for Caredx and BioAffinity Technologies,

0.76

Correlation Coefficient

Caredx  BioAffinity Technologies,

Poor diversification

The 3 months correlation between Caredx and BioAffinity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Caredx Inc and bioAffinity Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bioAffinity Technologies, and Caredx 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 Caredx Inc are associated (or correlated) with BioAffinity Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bioAffinity Technologies, has no effect on the direction of Caredx i.e., Caredx and BioAffinity Technologies, go up and down completely randomly.

Pair Corralation between Caredx and BioAffinity Technologies,

Given the investment horizon of 90 days Caredx Inc is expected to generate 0.55 times more return on investment than BioAffinity Technologies,. However, Caredx Inc is 1.83 times less risky than BioAffinity Technologies,. It trades about -0.05 of its potential returns per unit of risk. bioAffinity Technologies, is currently generating about -0.24 per unit of risk. If you would invest  2,118  in Caredx Inc on December 30, 2024 and sell it today you would lose (322.00) from holding Caredx Inc or give up 15.2% of portfolio value over 90 days.

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

Caredx Inc  vs.  bioAffinity Technologies,

Caredx Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caredx Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

bioAffinity Technologies,

Risk-Adjusted Performance

Very Weak

Over the last 90 days bioAffinity Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Caredx and BioAffinity Technologies,

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

The idea behind Caredx Inc and bioAffinity Technologies, 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.