Correlation Between Abcellera Biologics and BCE
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and BCE 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 Abcellera Biologics and BCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and BCE Inc, you can compare the effects of market volatilities on Abcellera Biologics and BCE 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 Abcellera Biologics with a short position of BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and BCE.
Diversification Opportunities for Abcellera Biologics and BCE
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Abcellera and BCE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc and Abcellera Biologics 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 Abcellera Biologics are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and BCE go up and down completely randomly.
Pair Corralation between Abcellera Biologics and BCE
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 4.62 times more return on investment than BCE. However, Abcellera Biologics is 4.62 times more volatile than BCE Inc. It trades about 0.07 of its potential returns per unit of risk. BCE Inc is currently generating about -0.32 per unit of risk. If you would invest 289.00 in Abcellera Biologics on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Abcellera Biologics or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. BCE Inc
Performance |
| Timeline |
| Abcellera Biologics |
| BCE Inc |
Abcellera Biologics and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and BCE
The main advantage of trading using opposite Abcellera Biologics and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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