Correlation Between Braxia Scientific and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Braxia Scientific and ImmuCell 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 Braxia Scientific and ImmuCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braxia Scientific Corp and ImmuCell, you can compare the effects of market volatilities on Braxia Scientific and ImmuCell 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 Braxia Scientific with a short position of ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braxia Scientific and ImmuCell.
Diversification Opportunities for Braxia Scientific and ImmuCell
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Braxia and ImmuCell is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Braxia Scientific Corp and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Braxia Scientific 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 Braxia Scientific Corp are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Braxia Scientific i.e., Braxia Scientific and ImmuCell go up and down completely randomly.
Pair Corralation between Braxia Scientific and ImmuCell
Assuming the 90 days horizon Braxia Scientific Corp is expected to generate 4.77 times more return on investment than ImmuCell. However, Braxia Scientific is 4.77 times more volatile than ImmuCell. It trades about 0.03 of its potential returns per unit of risk. ImmuCell is currently generating about -0.03 per unit of risk. If you would invest 3.10 in Braxia Scientific Corp on August 25, 2024 and sell it today you would lose (2.70) from holding Braxia Scientific Corp or give up 87.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Braxia Scientific Corp vs. ImmuCell
Performance |
| Timeline |
| Braxia Scientific Corp |
| ImmuCell |
Braxia Scientific and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braxia Scientific and ImmuCell
The main advantage of trading using opposite Braxia Scientific and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braxia Scientific position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.The idea behind Braxia Scientific Corp and ImmuCell 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.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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