Correlation Between Humasis and Bridge Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Humasis and Bridge Biotherapeutics 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 Humasis and Bridge Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and Bridge Biotherapeutics, you can compare the effects of market volatilities on Humasis and Bridge Biotherapeutics 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 Humasis with a short position of Bridge Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and Bridge Biotherapeutics.
Diversification Opportunities for Humasis and Bridge Biotherapeutics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humasis and Bridge is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Bridge Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Biotherapeutics and Humasis 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 Humasis Co are associated (or correlated) with Bridge Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridge Biotherapeutics has no effect on the direction of Humasis i.e., Humasis and Bridge Biotherapeutics go up and down completely randomly.
Pair Corralation between Humasis and Bridge Biotherapeutics
Assuming the 90 days trading horizon Humasis Co is expected to generate 0.91 times more return on investment than Bridge Biotherapeutics. However, Humasis Co is 1.1 times less risky than Bridge Biotherapeutics. It trades about -0.02 of its potential returns per unit of risk. Bridge Biotherapeutics is currently generating about -0.13 per unit of risk. If you would invest 208,000 in Humasis Co on September 5, 2024 and sell it today you would lose (12,800) from holding Humasis Co or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. Bridge Biotherapeutics
Performance |
| Timeline |
| Humasis |
| Bridge Biotherapeutics |
Humasis and Bridge Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and Bridge Biotherapeutics
The main advantage of trading using opposite Humasis and Bridge Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, Bridge Biotherapeutics 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 Bridge Biotherapeutics will offset losses from the drop in Bridge Biotherapeutics' long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
| Bridge Biotherapeutics vs. Settlebank | Bridge Biotherapeutics vs. Hana Financial | Bridge Biotherapeutics vs. Samsung Life Insurance | Bridge Biotherapeutics vs. Dongbu Insurance Co |
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 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.
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