Correlation Between AGE Old and Lineage Cell
Can any of the company-specific risk be diversified away by investing in both AGE Old and Lineage Cell 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 AGE Old and Lineage Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGE Old and Lineage Cell Therapeutics, you can compare the effects of market volatilities on AGE Old and Lineage Cell 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 AGE Old with a short position of Lineage Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGE Old and Lineage Cell.
Diversification Opportunities for AGE Old and Lineage Cell
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGE and Lineage is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AGE Old and Lineage Cell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lineage Cell Therapeutics and AGE Old 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 AGE Old are associated (or correlated) with Lineage Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lineage Cell Therapeutics has no effect on the direction of AGE Old i.e., AGE Old and Lineage Cell go up and down completely randomly.
Pair Corralation between AGE Old and Lineage Cell
If you would invest 52.00 in Lineage Cell Therapeutics on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Lineage Cell Therapeutics or generate 21.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
AGE Old vs. Lineage Cell Therapeutics
Performance |
| Timeline |
| AGE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lineage Cell Therapeutics |
AGE Old and Lineage Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGE Old and Lineage Cell
The main advantage of trading using opposite AGE Old and Lineage Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGE Old position performs unexpectedly, Lineage Cell 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 Lineage Cell will offset losses from the drop in Lineage Cell's long position.| AGE Old vs. MAIA Biotechnology | AGE Old vs. Larimar Therapeutics | AGE Old vs. Lyra Therapeutics | AGE Old vs. Lineage Cell Therapeutics |
| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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