Correlation Between SINTX Technologies and Biomerica

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

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

Diversification Opportunities for SINTX Technologies and Biomerica

-0.25

Correlation Coefficient

SINTX Technologies  Biomerica

Very good diversification

The 3 months correlation between SINTX and Biomerica is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SINTX Technologies and Biomerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomerica and SINTX Technologies 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 SINTX Technologies are associated (or correlated) with Biomerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomerica has no effect on the direction of SINTX Technologies i.e., SINTX Technologies and Biomerica go up and down completely randomly.

Pair Corralation between SINTX Technologies and Biomerica

Given the investment horizon of 90 days SINTX Technologies is expected to generate 1.12 times more return on investment than Biomerica. However, SINTX Technologies is 1.12 times more volatile than Biomerica. It trades about 0.04 of its potential returns per unit of risk. Biomerica is currently generating about -0.1 per unit of risk. If you would invest  347.00  in SINTX Technologies on October 5, 2024 and sell it today you would earn a total of  3.00  from holding SINTX Technologies or generate 0.86% return on investment over 90 days.

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

SINTX Technologies  vs.  Biomerica

SINTX Technologies

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SINTX Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SINTX Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Biomerica

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biomerica are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Biomerica may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SINTX Technologies and Biomerica

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

The idea behind SINTX Technologies and Biomerica 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.