Correlation Between Illumina and BioAffinity Technologies,

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

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

Diversification Opportunities for Illumina and BioAffinity Technologies,

0.45

Correlation Coefficient

Illumina  BioAffinity Technologies,

Very weak diversification

The 3 months correlation between Illumina and BioAffinity is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Illumina and bioAffinity Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bioAffinity Technologies, and Illumina 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 Illumina 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 Illumina i.e., Illumina and BioAffinity Technologies, go up and down completely randomly.

Pair Corralation between Illumina and BioAffinity Technologies,

Given the investment horizon of 90 days Illumina is expected to generate 0.43 times more return on investment than BioAffinity Technologies,. However, Illumina is 2.32 times less risky than BioAffinity Technologies,. It trades about -0.25 of its potential returns per unit of risk. bioAffinity Technologies, is currently generating about -0.17 per unit of risk. If you would invest  14,415  in Illumina on November 29, 2024 and sell it today you would lose (5,010) from holding Illumina or give up 34.76% of portfolio value over 90 days.

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

Illumina  vs.  bioAffinity Technologies,

Illumina

Risk-Adjusted Performance

Very Weak

Over the last 90 days Illumina has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm 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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Illumina and BioAffinity Technologies,

The main advantage of trading using opposite Illumina and BioAffinity Technologies, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Illumina 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 Illumina 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.