Correlation Between Bone Biologics and Anteris Technologies

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

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

Diversification Opportunities for Bone Biologics and Anteris Technologies

0.71

Correlation Coefficient

Bone Biologics  Anteris Technologies

Poor diversification

The 3 months correlation between Bone and Anteris is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Anteris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anteris Technologies and Bone Biologics 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 Bone Biologics Corp are associated (or correlated) with Anteris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anteris Technologies has no effect on the direction of Bone Biologics i.e., Bone Biologics and Anteris Technologies go up and down completely randomly.

Pair Corralation between Bone Biologics and Anteris Technologies

Assuming the 90 days horizon Bone Biologics Corp is expected to generate 4.67 times more return on investment than Anteris Technologies. However, Bone Biologics is 4.67 times more volatile than Anteris Technologies. It trades about 0.06 of its potential returns per unit of risk. Anteris Technologies is currently generating about -0.03 per unit of risk. If you would invest  6,050  in Bone Biologics Corp on September 4, 2024 and sell it today you would lose (3,270) from holding Bone Biologics Corp or give up 54.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Bone Biologics Corp  vs.  Anteris Technologies

Bone Biologics Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bone Biologics Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Bone Biologics showed solid returns over the last few months and may actually be approaching a breakup point.

Anteris Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anteris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Bone Biologics and Anteris Technologies

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

The idea behind Bone Biologics Corp and Anteris Technologies 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.