Correlation Between Bioventix and Kitwave Group

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

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

Diversification Opportunities for Bioventix and Kitwave Group

0.27

Correlation Coefficient

Bioventix  Kitwave Group

Modest diversification

The 3 months correlation between Bioventix and Kitwave is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bioventix and Kitwave Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kitwave Group PLC and Bioventix 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 Bioventix are associated (or correlated) with Kitwave Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kitwave Group PLC has no effect on the direction of Bioventix i.e., Bioventix and Kitwave Group go up and down completely randomly.

Pair Corralation between Bioventix and Kitwave Group

Assuming the 90 days trading horizon Bioventix is expected to generate 0.76 times more return on investment than Kitwave Group. However, Bioventix is 1.32 times less risky than Kitwave Group. It trades about 0.07 of its potential returns per unit of risk. Kitwave Group PLC is currently generating about -0.02 per unit of risk. If you would invest  250,000  in Bioventix on April 20, 2025 and sell it today you would earn a total of  22,500  from holding Bioventix or generate 9.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bioventix  vs.  Kitwave Group PLC

Bioventix

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bioventix are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Bioventix may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Kitwave Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kitwave Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Kitwave Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bioventix and Kitwave Group

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

The idea behind Bioventix and Kitwave Group PLC 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.