Correlation Between Intelligent Bio and Biocept

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

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

Diversification Opportunities for Intelligent Bio and Biocept

0.0

Correlation Coefficient

Intelligent Bio  Biocept

Pay attention - limited upside

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

Pair Corralation between Intelligent Bio and Biocept

If you would invest  144.00  in Intelligent Bio Solutions on November 29, 2024 and sell it today you would earn a total of  59.00  from holding Intelligent Bio Solutions or generate 40.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intelligent Bio Solutions  vs.  Biocept

Intelligent Bio Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Biocept

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Intelligent Bio and Biocept

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

The idea behind Intelligent Bio Solutions and Biocept 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 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.