Correlation Between Sure Tech and Bio Meat

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

By analyzing existing cross correlation between Sure Tech Investments LP and Bio Meat Foodtech, you can compare the effects of market volatilities on Sure Tech and Bio Meat 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 Sure Tech with a short position of Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Bio Meat.

Diversification Opportunities for Sure Tech and Bio Meat

0.68

Correlation Coefficient

Sure Tech  Bio Meat

Poor diversification

The 3 months correlation between Sure and Bio is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of Sure Tech i.e., Sure Tech and Bio Meat go up and down completely randomly.

Pair Corralation between Sure Tech and Bio Meat

Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Bio Meat. But the stock apears to be less risky and, when comparing its historical volatility, Sure Tech Investments LP is 1.27 times less risky than Bio Meat. The stock trades about -0.22 of its potential returns per unit of risk. The Bio Meat Foodtech is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  2,430  in Bio Meat Foodtech on April 22, 2025 and sell it today you would lose (410.00) from holding Bio Meat Foodtech or give up 16.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.0%
Values	Daily Returns

Sure Tech Investments LP  vs.  Bio Meat Foodtech

Sure Tech Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sure Tech Investments LP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Bio Meat Foodtech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bio Meat Foodtech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sure Tech and Bio Meat

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

The idea behind Sure Tech Investments LP and Bio Meat Foodtech 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 Commodity Directory module to find actively traded commodities issued by global exchanges.