Correlation Between Biodexa Pharmaceticals and Seres Therapeutics
Can any of the company-specific risk be diversified away by investing in both Biodexa Pharmaceticals and Seres Therapeutics 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 Biodexa Pharmaceticals and Seres Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biodexa Pharmaceticals and Seres Therapeutics, you can compare the effects of market volatilities on Biodexa Pharmaceticals and Seres Therapeutics 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 Biodexa Pharmaceticals with a short position of Seres Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biodexa Pharmaceticals and Seres Therapeutics.
Diversification Opportunities for Biodexa Pharmaceticals and Seres Therapeutics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biodexa and Seres is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Biodexa Pharmaceticals and Seres Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seres Therapeutics and Biodexa Pharmaceticals 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 Biodexa Pharmaceticals are associated (or correlated) with Seres Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seres Therapeutics has no effect on the direction of Biodexa Pharmaceticals i.e., Biodexa Pharmaceticals and Seres Therapeutics go up and down completely randomly.
Pair Corralation between Biodexa Pharmaceticals and Seres Therapeutics
Given the investment horizon of 90 days Biodexa Pharmaceticals is expected to under-perform the Seres Therapeutics. In addition to that, Biodexa Pharmaceticals is 1.77 times more volatile than Seres Therapeutics. It trades about -0.06 of its total potential returns per unit of risk. Seres Therapeutics is currently generating about -0.02 per unit of volatility. If you would invest 667.00 in Seres Therapeutics on September 3, 2024 and sell it today you would lose (569.00) from holding Seres Therapeutics or give up 85.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biodexa Pharmaceticals vs. Seres Therapeutics
Performance |
| Timeline |
| Biodexa Pharmaceticals |
| Seres Therapeutics |
Biodexa Pharmaceticals and Seres Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biodexa Pharmaceticals and Seres Therapeutics
The main advantage of trading using opposite Biodexa Pharmaceticals and Seres Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biodexa Pharmaceticals position performs unexpectedly, Seres Therapeutics 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 Seres Therapeutics will offset losses from the drop in Seres Therapeutics' long position.| Biodexa Pharmaceticals vs. DiaMedica Therapeutics | Biodexa Pharmaceticals vs. Lyra Therapeutics | Biodexa Pharmaceticals vs. Centessa Pharmaceuticals PLC |
| Seres Therapeutics vs. DiaMedica Therapeutics | Seres Therapeutics vs. Lyra Therapeutics | Seres Therapeutics vs. Centessa Pharmaceuticals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |