Correlation Between BioCardia and Genocea Biosciences
Can any of the company-specific risk be diversified away by investing in both BioCardia and Genocea Biosciences 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 Genocea Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioCardia and Genocea Biosciences, you can compare the effects of market volatilities on BioCardia and Genocea Biosciences 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 Genocea Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCardia and Genocea Biosciences.
Diversification Opportunities for BioCardia and Genocea Biosciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioCardia and Genocea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioCardia and Genocea Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genocea Biosciences 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 Genocea Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genocea Biosciences has no effect on the direction of BioCardia i.e., BioCardia and Genocea Biosciences go up and down completely randomly.
Pair Corralation between BioCardia and Genocea Biosciences
If you would invest 73.00 in BioCardia on November 2, 2024 and sell it today you would lose (73.00) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BioCardia vs. Genocea Biosciences
Performance |
| Timeline |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Genocea Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioCardia and Genocea Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioCardia and Genocea Biosciences
The main advantage of trading using opposite BioCardia and Genocea Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioCardia position performs unexpectedly, Genocea Biosciences 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 Genocea Biosciences will offset losses from the drop in Genocea Biosciences' long position.The idea behind BioCardia and Genocea Biosciences 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.| Genocea Biosciences vs. Chemours Co | Genocea Biosciences vs. The Cheesecake Factory | Genocea Biosciences vs. First Watch Restaurant | Genocea Biosciences vs. Cracker Barrel Old |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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