Correlation Between Fonar and BioAffinity Technologies,

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

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

Diversification Opportunities for Fonar and BioAffinity Technologies,

0.07

Correlation Coefficient

Fonar  BioAffinity Technologies,

Significant diversification

The 3 months correlation between Fonar and BioAffinity is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and bioAffinity Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bioAffinity Technologies, and Fonar 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 Fonar 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 Fonar i.e., Fonar and BioAffinity Technologies, go up and down completely randomly.

Pair Corralation between Fonar and BioAffinity Technologies,

Given the investment horizon of 90 days Fonar is expected to generate 0.38 times more return on investment than BioAffinity Technologies,. However, Fonar is 2.61 times less risky than BioAffinity Technologies,. It trades about 0.04 of its potential returns per unit of risk. bioAffinity Technologies, is currently generating about -0.11 per unit of risk. If you would invest  1,543  in Fonar on November 19, 2024 and sell it today you would earn a total of  82.00  from holding Fonar or generate 5.31% return on investment over 90 days.

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

Fonar  vs.  bioAffinity Technologies,

Fonar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fonar are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fonar may actually be approaching a critical reversion point that can send shares even higher in March 2025.

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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Fonar and BioAffinity Technologies,

The main advantage of trading using opposite Fonar and BioAffinity Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar 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 Fonar 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.