Correlation Between Biocardia and Surrozen
Can any of the company-specific risk be diversified away by investing in both Biocardia and Surrozen 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 Biocardia and Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocardia and Surrozen, you can compare the effects of market volatilities on Biocardia and Surrozen 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 Biocardia with a short position of Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocardia and Surrozen.
Diversification Opportunities for Biocardia and Surrozen
Average diversification
The 3 months correlation between Biocardia and Surrozen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Biocardia and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Biocardia 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 Biocardia are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Biocardia i.e., Biocardia and Surrozen go up and down completely randomly.
Pair Corralation between Biocardia and Surrozen
Given the investment horizon of 90 days Biocardia is expected to under-perform the Surrozen. In addition to that, Biocardia is 1.07 times more volatile than Surrozen. It trades about -0.08 of its total potential returns per unit of risk. Surrozen is currently generating about 0.03 per unit of volatility. If you would invest 1,122 in Surrozen on November 28, 2024 and sell it today you would earn a total of 12.00 from holding Surrozen or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biocardia vs. Surrozen
Performance |
| Timeline |
| Biocardia |
| Surrozen |
Biocardia and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocardia and Surrozen
The main advantage of trading using opposite Biocardia and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocardia position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Biocardia vs. Aerovate Therapeutics | Biocardia vs. Adagene | Biocardia vs. Acrivon Therapeutics, Common | Biocardia vs. Rezolute |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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