Correlation Between BioAffinity Technologies and Stryker

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

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

Diversification Opportunities for BioAffinity Technologies and Stryker

-0.41

Correlation Coefficient

BioAffinity Technologies  Stryker

Very good diversification

The 3 months correlation between BioAffinity and Stryker is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and BioAffinity 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 bioAffinity Technologies Warrant are associated (or correlated) with Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and Stryker go up and down completely randomly.

Pair Corralation between BioAffinity Technologies and Stryker

Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to generate 16.75 times more return on investment than Stryker. However, BioAffinity Technologies is 16.75 times more volatile than Stryker. It trades about 0.09 of its potential returns per unit of risk. Stryker is currently generating about 0.05 per unit of risk. If you would invest  210.00  in bioAffinity Technologies Warrant on February 15, 2024 and sell it today you would lose (182.72) from holding bioAffinity Technologies Warrant or give up 87.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	64.24%
Values	Daily Returns

bioAffinity Technologies Warra  vs.  Stryker

BioAffinity Technologies

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days bioAffinity Technologies Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak technical and fundamental indicators, BioAffinity Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Stryker

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stryker has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with BioAffinity Technologies and Stryker

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

The idea behind bioAffinity Technologies Warrant and Stryker 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.