Correlation Between Antibe Therapeutics and Therasense
Can any of the company-specific risk be diversified away by investing in both Antibe Therapeutics and Therasense 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 Antibe Therapeutics and Therasense into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antibe Therapeutics and Therasense, you can compare the effects of market volatilities on Antibe Therapeutics and Therasense 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 Antibe Therapeutics with a short position of Therasense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antibe Therapeutics and Therasense.
Diversification Opportunities for Antibe Therapeutics and Therasense
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Antibe and Therasense is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Antibe Therapeutics and Therasense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Therasense and Antibe Therapeutics 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 Antibe Therapeutics are associated (or correlated) with Therasense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Therasense has no effect on the direction of Antibe Therapeutics i.e., Antibe Therapeutics and Therasense go up and down completely randomly.
Pair Corralation between Antibe Therapeutics and Therasense
If you would invest 0.01 in Therasense on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Therasense or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antibe Therapeutics vs. Therasense
Performance |
| Timeline |
| Antibe Therapeutics |
| Therasense |
Antibe Therapeutics and Therasense Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antibe Therapeutics and Therasense
The main advantage of trading using opposite Antibe Therapeutics and Therasense positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antibe Therapeutics position performs unexpectedly, Therasense 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 Therasense will offset losses from the drop in Therasense's long position.| Antibe Therapeutics vs. Biotron Limited | Antibe Therapeutics vs. biOasis Technologies | Antibe Therapeutics vs. Covalon Technologies | Antibe Therapeutics vs. Mosaic Immunoengineering |
| Therasense vs. GB Sciences | Therasense vs. Scisparc | Therasense vs. Creative Medical Technology | Therasense vs. Regen BioPharma |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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