Correlation Between Heart Test and BioAffinity Technologies

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

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

Diversification Opportunities for Heart Test and BioAffinity Technologies

0.02

Correlation Coefficient

Heart Test  BioAffinity Technologies

Significant diversification

The 3 months correlation between Heart and BioAffinity is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Heart Test Laboratories and bioAffinity Technologies Warra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAffinity Technologies and Heart Test 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 Heart Test Laboratories 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 Heart Test i.e., Heart Test and BioAffinity Technologies go up and down completely randomly.

Pair Corralation between Heart Test and BioAffinity Technologies

Given the investment horizon of 90 days Heart Test Laboratories is expected to generate 0.18 times more return on investment than BioAffinity Technologies. However, Heart Test Laboratories is 5.59 times less risky than BioAffinity Technologies. It trades about -0.04 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  391.00  in Heart Test Laboratories on February 14, 2025 and sell it today you would lose (57.00) from holding Heart Test Laboratories or give up 14.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	75.81%
Values	Daily Returns

Heart Test Laboratories  vs.  bioAffinity Technologies Warra

Heart Test Laboratories

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heart Test Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

BioAffinity Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days bioAffinity Technologies Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in June 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Heart Test and BioAffinity Technologies

The main advantage of trading using opposite Heart Test and BioAffinity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heart Test 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 Heart Test Laboratories 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.