Correlation Between Abcellera Biologics and Tefron
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Tefron 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 Tefron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and Tefron, you can compare the effects of market volatilities on Abcellera Biologics and Tefron 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 Tefron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Tefron.
Diversification Opportunities for Abcellera Biologics and Tefron
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abcellera and Tefron is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Tefron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tefron 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 Tefron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tefron has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Tefron go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Tefron
Given the investment horizon of 90 days Abcellera Biologics is expected to generate 0.76 times more return on investment than Tefron. However, Abcellera Biologics is 1.31 times less risky than Tefron. It trades about -0.05 of its potential returns per unit of risk. Tefron is currently generating about -0.16 per unit of risk. If you would invest 1,008 in Abcellera Biologics on September 3, 2024 and sell it today you would lose (707.00) from holding Abcellera Biologics or give up 70.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.08% |
| Values | Daily Returns |
Abcellera Biologics vs. Tefron
Performance |
| Timeline |
| Abcellera Biologics |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Abcellera Biologics and Tefron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Tefron
The main advantage of trading using opposite Abcellera Biologics and Tefron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Tefron 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 Tefron will offset losses from the drop in Tefron's long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
| Tefron vs. Acumen Pharmaceuticals | Tefron vs. Willscot Mobile Mini | Tefron vs. Global Ship Lease | Tefron vs. Abcellera Biologics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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