Correlation Between Amarantus Bioscience and Rezolute
Can any of the company-specific risk be diversified away by investing in both Amarantus Bioscience and Rezolute 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 Amarantus Bioscience and Rezolute into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarantus Bioscience Holdings and Rezolute, you can compare the effects of market volatilities on Amarantus Bioscience and Rezolute 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 Amarantus Bioscience with a short position of Rezolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarantus Bioscience and Rezolute.
Diversification Opportunities for Amarantus Bioscience and Rezolute
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amarantus and Rezolute is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amarantus Bioscience Holdings and Rezolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rezolute and Amarantus Bioscience 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 Amarantus Bioscience Holdings are associated (or correlated) with Rezolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rezolute has no effect on the direction of Amarantus Bioscience i.e., Amarantus Bioscience and Rezolute go up and down completely randomly.
Pair Corralation between Amarantus Bioscience and Rezolute
Given the investment horizon of 90 days Amarantus Bioscience Holdings is expected to generate 7.12 times more return on investment than Rezolute. However, Amarantus Bioscience is 7.12 times more volatile than Rezolute. It trades about 0.09 of its potential returns per unit of risk. Rezolute is currently generating about -0.1 per unit of risk. If you would invest 0.01 in Amarantus Bioscience Holdings on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Amarantus Bioscience Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarantus Bioscience Holdings vs. Rezolute
Performance |
| Timeline |
| Amarantus Bioscience |
| Rezolute |
Amarantus Bioscience and Rezolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarantus Bioscience and Rezolute
The main advantage of trading using opposite Amarantus Bioscience and Rezolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarantus Bioscience position performs unexpectedly, Rezolute 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 Rezolute will offset losses from the drop in Rezolute's long position.| Amarantus Bioscience vs. Akeso, Inc | Amarantus Bioscience vs. Avax Techs | Amarantus Bioscience vs. Ascletis Pharma |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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