Correlation Between Hims Hers and Bio Rad

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Can any of the company-specific risk be diversified away by investing in both Hims Hers and Bio Rad 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 Hims Hers and Bio Rad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and Bio Rad Laboratories, you can compare the effects of market volatilities on Hims Hers and Bio Rad 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 Hims Hers with a short position of Bio Rad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and Bio Rad.

Diversification Opportunities for Hims Hers and Bio Rad

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Hims and Bio is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and Bio Rad Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Rad Laboratories and Hims Hers 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 Hims Hers Health are associated (or correlated) with Bio Rad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Rad Laboratories has no effect on the direction of Hims Hers i.e., Hims Hers and Bio Rad go up and down completely randomly.

Pair Corralation between Hims Hers and Bio Rad

Given the investment horizon of 90 days Hims Hers Health is expected to under-perform the Bio Rad. In addition to that, Hims Hers is 2.28 times more volatile than Bio Rad Laboratories. It trades about -0.02 of its total potential returns per unit of risk. Bio Rad Laboratories is currently generating about 0.08 per unit of volatility. If you would invest  29,284  in Bio Rad Laboratories on August 27, 2025 and sell it today you would earn a total of  2,964  from holding Bio Rad Laboratories or generate 10.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Hims Hers Health  vs.  Bio Rad Laboratories

 Performance 
       Timeline  
Hims Hers Health 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hims Hers Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Bio Rad Laboratories 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Hims Hers and Bio Rad Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hims Hers and Bio Rad

The main advantage of trading using opposite Hims Hers and Bio Rad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, Bio Rad 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 Bio Rad will offset losses from the drop in Bio Rad's long position.
The idea behind Hims Hers Health and Bio Rad Laboratories 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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