Correlation Between Rockwell Medical and BioAge Labs,

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

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

Diversification Opportunities for Rockwell Medical and BioAge Labs,

0.75

Correlation Coefficient

Rockwell Medical  BioAge Labs,

Poor diversification

The 3 months correlation between Rockwell and BioAge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Rockwell Medical and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and Rockwell Medical 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 Rockwell Medical are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of Rockwell Medical i.e., Rockwell Medical and BioAge Labs, go up and down completely randomly.

Pair Corralation between Rockwell Medical and BioAge Labs,

Given the investment horizon of 90 days Rockwell Medical is expected to generate 0.21 times more return on investment than BioAge Labs,. However, Rockwell Medical is 4.78 times less risky than BioAge Labs,. It trades about 0.07 of its potential returns per unit of risk. BioAge Labs, is currently generating about -0.11 per unit of risk. If you would invest  223.00  in Rockwell Medical on October 5, 2024 and sell it today you would earn a total of  10.00  from holding Rockwell Medical or generate 4.48% return on investment over 90 days.

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

Rockwell Medical  vs.  BioAge Labs,

Rockwell Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rockwell Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

BioAge Labs,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioAge Labs, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Rockwell Medical and BioAge Labs,

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

The idea behind Rockwell Medical and BioAge Labs, 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.