Correlation Between Telesis Bio and NAYA Biosciences,

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

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

Diversification Opportunities for Telesis Bio and NAYA Biosciences,

-0.32

Correlation Coefficient

Telesis Bio  NAYA Biosciences,

Very good diversification

The 3 months correlation between Telesis and NAYA is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Telesis Bio and NAYA Biosciences, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAYA Biosciences, and Telesis Bio 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 Telesis Bio are associated (or correlated) with NAYA Biosciences,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAYA Biosciences, has no effect on the direction of Telesis Bio i.e., Telesis Bio and NAYA Biosciences, go up and down completely randomly.

Pair Corralation between Telesis Bio and NAYA Biosciences,

Given the investment horizon of 90 days Telesis Bio is expected to generate 2.91 times more return on investment than NAYA Biosciences,. However, Telesis Bio is 2.91 times more volatile than NAYA Biosciences,. It trades about 0.22 of its potential returns per unit of risk. NAYA Biosciences, is currently generating about 0.06 per unit of risk. If you would invest  160.00  in Telesis Bio on September 13, 2024 and sell it today you would earn a total of  138.00  from holding Telesis Bio or generate 86.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	25.0%
Values	Daily Returns

Telesis Bio  vs.  NAYA Biosciences,

Telesis Bio

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Telesis Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very inconsistent forward indicators, Telesis Bio displayed solid returns over the last few months and may actually be approaching a breakup point.

NAYA Biosciences,

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NAYA Biosciences, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, NAYA Biosciences, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telesis Bio and NAYA Biosciences,

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

The idea behind Telesis Bio and NAYA Biosciences, 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.