Correlation Between Bone Biologics and Delcath Systems
Can any of the company-specific risk be diversified away by investing in both Bone Biologics and Delcath Systems 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 Bone Biologics and Delcath Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bone Biologics Corp and Delcath Systems, you can compare the effects of market volatilities on Bone Biologics and Delcath Systems 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 Bone Biologics with a short position of Delcath Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bone Biologics and Delcath Systems.
Diversification Opportunities for Bone Biologics and Delcath Systems
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bone and Delcath is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems and Bone Biologics 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 Bone Biologics Corp are associated (or correlated) with Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of Bone Biologics i.e., Bone Biologics and Delcath Systems go up and down completely randomly.
Pair Corralation between Bone Biologics and Delcath Systems
Given the investment horizon of 90 days Bone Biologics is expected to generate 3.8 times less return on investment than Delcath Systems. In addition to that, Bone Biologics is 1.32 times more volatile than Delcath Systems. It trades about 0.06 of its total potential returns per unit of risk. Delcath Systems is currently generating about 0.32 per unit of volatility. If you would invest 1,261 in Delcath Systems on November 2, 2024 and sell it today you would earn a total of 336.00 from holding Delcath Systems or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bone Biologics Corp vs. Delcath Systems
Performance |
| Timeline |
| Bone Biologics Corp |
| Delcath Systems |
Bone Biologics and Delcath Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bone Biologics and Delcath Systems
The main advantage of trading using opposite Bone Biologics and Delcath Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics position performs unexpectedly, Delcath Systems 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 Delcath Systems will offset losses from the drop in Delcath Systems' long position.| Bone Biologics vs. Bluejay Diagnostics | Bone Biologics vs. Nuwellis | Bone Biologics vs. Heart Test Laboratories | Bone Biologics vs. Tivic Health Systems |
| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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