Correlation Between Abcellera Biologics and Southland Holdings
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Southland Holdings 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 Southland Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and Southland Holdings, you can compare the effects of market volatilities on Abcellera Biologics and Southland Holdings 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 Southland Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Southland Holdings.
Diversification Opportunities for Abcellera Biologics and Southland Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abcellera and Southland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Southland Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southland Holdings 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 Southland Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southland Holdings has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Southland Holdings go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Southland Holdings
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 0.99 times more return on investment than Southland Holdings. However, Abcellera Biologics is 1.01 times less risky than Southland Holdings. It trades about 0.07 of its potential returns per unit of risk. Southland Holdings is currently generating about -0.03 per unit of risk. If you would invest 285.00 in Abcellera Biologics on October 21, 2024 and sell it today you would earn a total of 12.00 from holding Abcellera Biologics or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. Southland Holdings
Performance |
| Timeline |
| Abcellera Biologics |
| Southland Holdings |
Abcellera Biologics and Southland Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Southland Holdings
The main advantage of trading using opposite Abcellera Biologics and Southland Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Southland Holdings 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 Southland Holdings will offset losses from the drop in Southland Holdings' long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
| Southland Holdings vs. Delek Logistics Partners | Southland Holdings vs. Catalyst Pharmaceuticals | Southland Holdings vs. Academy Sports Outdoors | Southland Holdings vs. Norfolk Southern |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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