Correlation Between BioAffinity Technologies and AppTech Payments

Can any of the company-specific risk be diversified away by investing in both BioAffinity Technologies and AppTech Payments 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 AppTech Payments 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 AppTech Payments Corp, you can compare the effects of market volatilities on BioAffinity Technologies and AppTech Payments 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 AppTech Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioAffinity Technologies and AppTech Payments.

Diversification Opportunities for BioAffinity Technologies and AppTech Payments

0.34

Correlation Coefficient

BioAffinity Technologies  AppTech Payments

Weak diversification

The 3 months correlation between BioAffinity and AppTech is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding bioAffinity Technologies Warra and AppTech Payments Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AppTech Payments Corp 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 AppTech Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AppTech Payments Corp has no effect on the direction of BioAffinity Technologies i.e., BioAffinity Technologies and AppTech Payments go up and down completely randomly.

Pair Corralation between BioAffinity Technologies and AppTech Payments

Assuming the 90 days horizon bioAffinity Technologies Warrant is expected to under-perform the AppTech Payments. But the stock apears to be less risky and, when comparing its historical volatility, bioAffinity Technologies Warrant is 1.05 times less risky than AppTech Payments. The stock trades about -0.04 of its potential returns per unit of risk. The AppTech Payments Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  20.00  in AppTech Payments Corp on September 13, 2024 and sell it today you would lose (3.00) from holding AppTech Payments Corp or give up 15.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.76%
Values	Daily Returns

bioAffinity Technologies Warra  vs.  AppTech Payments Corp

BioAffinity Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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 inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

AppTech Payments Corp

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with BioAffinity Technologies and AppTech Payments

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

The idea behind bioAffinity Technologies Warrant and AppTech Payments Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.