Correlation Between Abcellera Biologics and Chart Industries
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Chart Industries 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 Chart Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and Chart Industries, you can compare the effects of market volatilities on Abcellera Biologics and Chart Industries 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 Chart Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Chart Industries.
Diversification Opportunities for Abcellera Biologics and Chart Industries
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abcellera and Chart is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries 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 Chart Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chart Industries has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Chart Industries go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Chart Industries
Given the investment horizon of 90 days Abcellera Biologics is expected to under-perform the Chart Industries. In addition to that, Abcellera Biologics is 1.0 times more volatile than Chart Industries. It trades about -0.05 of its total potential returns per unit of risk. Chart Industries is currently generating about 0.05 per unit of volatility. If you would invest 12,056 in Chart Industries on September 3, 2024 and sell it today you would earn a total of 7,269 from holding Chart Industries or generate 60.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. Chart Industries
Performance |
| Timeline |
| Abcellera Biologics |
| Chart Industries |
Abcellera Biologics and Chart Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Chart Industries
The main advantage of trading using opposite Abcellera Biologics and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Chart Industries 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 Chart Industries will offset losses from the drop in Chart Industries' long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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