Correlation Between Abcellera Biologics and Encore Capital
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Encore Capital 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 Encore Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and Encore Capital Group, you can compare the effects of market volatilities on Abcellera Biologics and Encore Capital 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 Encore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Encore Capital.
Diversification Opportunities for Abcellera Biologics and Encore Capital
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Abcellera and Encore is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Encore Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encore Capital Group 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 Encore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encore Capital Group has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Encore Capital go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Encore Capital
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 1.38 times more return on investment than Encore Capital. However, Abcellera Biologics is 1.38 times more volatile than Encore Capital Group. It trades about 0.0 of its potential returns per unit of risk. Encore Capital Group is currently generating about -0.08 per unit of risk. If you would invest 277.00 in Abcellera Biologics on January 18, 2025 and sell it today you would lose (35.00) from holding Abcellera Biologics or give up 12.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. Encore Capital Group
Performance |
| Timeline |
| Abcellera Biologics |
| Encore Capital Group |
Abcellera Biologics and Encore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Encore Capital
The main advantage of trading using opposite Abcellera Biologics and Encore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Encore Capital 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 Encore Capital will offset losses from the drop in Encore Capital's long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Rain Enhancement Technologies | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV |
| Encore Capital vs. Guild Holdings Co | Encore Capital vs. Mr Cooper Group | Encore Capital vs. CNFinance Holdings | Encore Capital vs. Security National Financial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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