Correlation Between SSMTF and Bioharvest Sciences

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

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

Diversification Opportunities for SSMTF and Bioharvest Sciences

0.0

Correlation Coefficient

SSMTF  Bioharvest Sciences

Pay attention - limited upside

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

Pair Corralation between SSMTF and Bioharvest Sciences

If you would invest  0.15  in SSMTF on December 22, 2024 and sell it today you would earn a total of  0.00  from holding SSMTF or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	37.5%
Values	Daily Returns

SSMTF  vs.  Bioharvest Sciences

SSMTF

Risk-Adjusted Performance

Very Weak

Over the last 90 days SSMTF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SSMTF is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Bioharvest Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioharvest Sciences 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 fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SSMTF and Bioharvest Sciences

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

The idea behind SSMTF and Bioharvest Sciences 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.