Correlation Between Abcam PLC and NextCure
Can any of the company-specific risk be diversified away by investing in both Abcam PLC and NextCure 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 Abcam PLC and NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcam PLC and NextCure, you can compare the effects of market volatilities on Abcam PLC and NextCure 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 Abcam PLC with a short position of NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcam PLC and NextCure.
Diversification Opportunities for Abcam PLC and NextCure
Excellent diversification
The 3 months correlation between Abcam and NextCure is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Abcam PLC and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure and Abcam PLC 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 Abcam PLC are associated (or correlated) with NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Abcam PLC i.e., Abcam PLC and NextCure go up and down completely randomly.
Pair Corralation between Abcam PLC and NextCure
If you would invest 157.00 in NextCure on September 12, 2024 and sell it today you would lose (39.00) from holding NextCure or give up 24.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Abcam PLC vs. NextCure
Performance |
| Timeline |
| Abcam PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NextCure |
Abcam PLC and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcam PLC and NextCure
The main advantage of trading using opposite Abcam PLC and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcam PLC position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Abcam PLC vs. Anebulo Pharmaceuticals | Abcam PLC vs. Adagene | Abcam PLC vs. Acrivon Therapeutics, Common | Abcam PLC vs. AnaptysBio |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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