Correlation Between Cytogen and Bridge Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Cytogen 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 Cytogen and Bridge Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and Bridge Biotherapeutics, you can compare the effects of market volatilities on Cytogen 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 Cytogen with a short position of Bridge Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and Bridge Biotherapeutics.
Diversification Opportunities for Cytogen and Bridge Biotherapeutics
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cytogen and Bridge is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and Bridge Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Biotherapeutics and Cytogen 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 Cytogen 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 Cytogen i.e., Cytogen and Bridge Biotherapeutics go up and down completely randomly.
Pair Corralation between Cytogen and Bridge Biotherapeutics
Assuming the 90 days trading horizon Cytogen is expected to under-perform the Bridge Biotherapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Cytogen is 1.69 times less risky than Bridge Biotherapeutics. The stock trades about -0.09 of its potential returns per unit of risk. The Bridge Biotherapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 205,565 in Bridge Biotherapeutics on September 4, 2024 and sell it today you would earn a total of 139,935 from holding Bridge Biotherapeutics or generate 68.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. Bridge Biotherapeutics
Performance |
| Timeline |
| Cytogen |
| Bridge Biotherapeutics |
Cytogen and Bridge Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and Bridge Biotherapeutics
The main advantage of trading using opposite Cytogen and Bridge Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen 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.| Cytogen vs. Sejong Telecom | Cytogen vs. Shinhan Inverse Silver | Cytogen vs. HB Technology TD | Cytogen vs. Dong A Steel Technology |
| Bridge Biotherapeutics vs. AptaBio Therapeutics | Bridge Biotherapeutics vs. Cytogen | Bridge Biotherapeutics vs. Genolution |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |