Correlation Between Gain Therapeutics and Biomx

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

By analyzing existing cross correlation between Gain Therapeutics and Biomx Inc, you can compare the effects of market volatilities on Gain Therapeutics and Biomx 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 Gain Therapeutics with a short position of Biomx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gain Therapeutics and Biomx.

Diversification Opportunities for Gain Therapeutics and Biomx

-0.35

Correlation Coefficient

Gain Therapeutics  Biomx

Very good diversification

The 3 months correlation between Gain and Biomx is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Gain Therapeutics and Biomx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biomx Inc and Gain Therapeutics 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 Gain Therapeutics are associated (or correlated) with Biomx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biomx Inc has no effect on the direction of Gain Therapeutics i.e., Gain Therapeutics and Biomx go up and down completely randomly.

Pair Corralation between Gain Therapeutics and Biomx

Given the investment horizon of 90 days Gain Therapeutics is expected to generate 1.36 times more return on investment than Biomx. However, Gain Therapeutics is 1.36 times more volatile than Biomx Inc. It trades about 0.16 of its potential returns per unit of risk. Biomx Inc is currently generating about -0.11 per unit of risk. If you would invest  104.00  in Gain Therapeutics on September 2, 2024 and sell it today you would earn a total of  82.00  from holding Gain Therapeutics or generate 78.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gain Therapeutics  vs.  Biomx Inc

Gain Therapeutics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gain Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Gain Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Biomx Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biomx Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Gain Therapeutics and Biomx

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

The idea behind Gain Therapeutics and Biomx Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.