Correlation Between CbdMD and BioAge Labs,

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

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

Diversification Opportunities for CbdMD and BioAge Labs,

0.42

Correlation Coefficient

CbdMD  BioAge Labs,

Very weak diversification

The 3 months correlation between CbdMD and BioAge is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding cbdMD Inc and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and CbdMD 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 cbdMD Inc are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of CbdMD i.e., CbdMD and BioAge Labs, go up and down completely randomly.

Pair Corralation between CbdMD and BioAge Labs,

Assuming the 90 days trading horizon CbdMD is expected to generate 1.23 times less return on investment than BioAge Labs,. But when comparing it to its historical volatility, cbdMD Inc is 1.0 times less risky than BioAge Labs,. It trades about 0.03 of its potential returns per unit of risk. BioAge Labs, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,831  in BioAge Labs, on September 2, 2024 and sell it today you would earn a total of  49.00  from holding BioAge Labs, or generate 2.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	21.76%
Values	Daily Returns

cbdMD Inc  vs.  BioAge Labs,

cbdMD Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in cbdMD Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, CbdMD sustained solid returns over the last few months and may actually be approaching a breakup point.

BioAge Labs,

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioAge Labs, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, BioAge Labs, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CbdMD and BioAge Labs,

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

The idea behind cbdMD Inc and BioAge Labs, 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.

Check out your portfolio center.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.