Correlation Between Jeffs Brands and BioAffinity Technologies

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

By analyzing existing cross correlation between Jeffs Brands and bioAffinity Technologies Warrant, you can compare the effects of market volatilities on Jeffs Brands 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 Jeffs Brands with a short position of BioAffinity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and BioAffinity Technologies.

Diversification Opportunities for Jeffs Brands and BioAffinity Technologies

-0.36

Correlation Coefficient

Jeffs Brands  BioAffinity Technologies

Very good diversification

The 3 months correlation between Jeffs and BioAffinity is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands i.e., Jeffs Brands and BioAffinity Technologies go up and down completely randomly.

Pair Corralation between Jeffs Brands and BioAffinity Technologies

Assuming the 90 days horizon Jeffs Brands is expected to generate 9.65 times more return on investment than BioAffinity Technologies. However, Jeffs Brands is 9.65 times more volatile than bioAffinity Technologies Warrant. It trades about 0.17 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  3.00  in Jeffs Brands on August 31, 2024 and sell it today you would earn a total of  1.00  from holding Jeffs Brands or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.0%
Values	Daily Returns

Jeffs Brands  vs.  bioAffinity Technologies Warra

Jeffs Brands

Risk-Adjusted Performance

13 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jeffs Brands are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Jeffs Brands showed solid returns over the last few months and may actually be approaching a breakup point.

BioAffinity Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in bioAffinity Technologies Warrant are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, BioAffinity Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jeffs Brands and BioAffinity Technologies

The main advantage of trading using opposite Jeffs Brands and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands 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.

The idea behind Jeffs Brands and bioAffinity Technologies Warrant 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.