Correlation Between Addentax Group and BioAffinity Technologies
Can any of the company-specific risk be diversified away by investing in both Addentax Group and BioAffinity Technologies 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 Addentax Group and BioAffinity Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addentax Group Corp and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Addentax Group and BioAffinity Technologies 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 Addentax Group with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addentax Group and BioAffinity Technologies.
Diversification Opportunities for Addentax Group and BioAffinity Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Addentax and BioAffinity is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Addentax Group Corp and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Addentax Group 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 Addentax Group Corp are associated (or correlated) with BioAffinity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAffinity Technologies has no effect on the direction of Addentax Group i.e., Addentax Group and BioAffinity Technologies go up and down completely randomly.
Pair Corralation between Addentax Group and BioAffinity Technologies
Given the investment horizon of 90 days Addentax Group Corp is expected to generate 0.26 times more return on investment than BioAffinity Technologies. However, Addentax Group Corp is 3.82 times less risky than BioAffinity Technologies. It trades about -0.11 of its potential returns per unit of risk. bioAffinity Technologies Warrant is currently generating about -0.04 per unit of risk. If you would invest 88.00 in Addentax Group Corp on June 1, 2025 and sell it today you would lose (32.00) from holding Addentax Group Corp or give up 36.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 53.97% |
| Values | Daily Returns |
Addentax Group Corp vs. bioAffinity Technologies Warra
Performance |
| Timeline |
| Addentax Group Corp |
| BioAffinity Technologies |
Addentax Group and BioAffinity Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addentax Group and BioAffinity Technologies
The main advantage of trading using opposite Addentax Group and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addentax Group position performs unexpectedly, BioAffinity Technologies 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 BioAffinity Technologies will offset losses from the drop in BioAffinity Technologies' long position.| Addentax Group vs. Jayud Global Logistics | Addentax Group vs. Freightos Limited Ordinary | Addentax Group vs. Radiant Logistics | Addentax Group vs. JB Hunt Transport |
| BioAffinity Technologies vs. bioAffinity Technologies, | BioAffinity Technologies vs. Exagen Inc | BioAffinity Technologies vs. Applied DNA Sciences | BioAffinity Technologies vs. AAP Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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