Correlation Between Armata Pharmaceuticals and Comera Life
Can any of the company-specific risk be diversified away by investing in both Armata Pharmaceuticals and Comera Life 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 Armata Pharmaceuticals and Comera Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armata Pharmaceuticals and Comera Life Sciences, you can compare the effects of market volatilities on Armata Pharmaceuticals and Comera Life 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 Armata Pharmaceuticals with a short position of Comera Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armata Pharmaceuticals and Comera Life.
Diversification Opportunities for Armata Pharmaceuticals and Comera Life
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armata and Comera is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Armata Pharmaceuticals and Comera Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comera Life Sciences and Armata Pharmaceuticals 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 Armata Pharmaceuticals are associated (or correlated) with Comera Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comera Life Sciences has no effect on the direction of Armata Pharmaceuticals i.e., Armata Pharmaceuticals and Comera Life go up and down completely randomly.
Pair Corralation between Armata Pharmaceuticals and Comera Life
Given the investment horizon of 90 days Armata Pharmaceuticals is expected to generate 3.72 times less return on investment than Comera Life. But when comparing it to its historical volatility, Armata Pharmaceuticals is 1.2 times less risky than Comera Life. It trades about 0.05 of its potential returns per unit of risk. Comera Life Sciences is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Comera Life Sciences on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Comera Life Sciences or generate 32.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Armata Pharmaceuticals vs. Comera Life Sciences
Performance |
| Timeline |
| Armata Pharmaceuticals |
| Comera Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Armata Pharmaceuticals and Comera Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armata Pharmaceuticals and Comera Life
The main advantage of trading using opposite Armata Pharmaceuticals and Comera Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armata Pharmaceuticals position performs unexpectedly, Comera Life 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 Comera Life will offset losses from the drop in Comera Life's long position.The idea behind Armata Pharmaceuticals and Comera Life Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Comera Life vs. SAB Biotherapeutics | Comera Life vs. Processa Pharmaceuticals | Comera Life vs. Third Harmonic Bio | Comera Life vs. Indaptus Therapeutics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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