Correlation Between MaxCyte and Bioelectronics Corp

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

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

Diversification Opportunities for MaxCyte and Bioelectronics Corp

-0.24

Correlation Coefficient

MaxCyte  Bioelectronics Corp

Very good diversification

The 3 months correlation between MaxCyte and Bioelectronics is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Bioelectronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioelectronics Corp and MaxCyte 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 MaxCyte are associated (or correlated) with Bioelectronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioelectronics Corp has no effect on the direction of MaxCyte i.e., MaxCyte and Bioelectronics Corp go up and down completely randomly.

Pair Corralation between MaxCyte and Bioelectronics Corp

Given the investment horizon of 90 days MaxCyte is expected to generate 1.94 times less return on investment than Bioelectronics Corp. But when comparing it to its historical volatility, MaxCyte is 7.12 times less risky than Bioelectronics Corp. It trades about 0.23 of its potential returns per unit of risk. Bioelectronics Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.03  in Bioelectronics Corp on October 26, 2024 and sell it today you would lose (0.01) from holding Bioelectronics Corp or give up 33.33% of portfolio value over 90 days.

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

MaxCyte  vs.  Bioelectronics Corp

MaxCyte

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MaxCyte are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, MaxCyte unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bioelectronics Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bioelectronics Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating technical and fundamental indicators, Bioelectronics Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MaxCyte and Bioelectronics Corp

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

The idea behind MaxCyte and Bioelectronics Corp 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.