Correlation Between British Amer and RepliCel Life
Can any of the company-specific risk be diversified away by investing in both British Amer and RepliCel Life 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 British Amer and RepliCel Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between biOasis Technologies and RepliCel Life Sciences, you can compare the effects of market volatilities on British Amer and RepliCel Life 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 British Amer with a short position of RepliCel Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Amer and RepliCel Life.
Diversification Opportunities for British Amer and RepliCel Life
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between British and RepliCel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and RepliCel Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RepliCel Life Sciences and British Amer 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 biOasis Technologies are associated (or correlated) with RepliCel Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RepliCel Life Sciences has no effect on the direction of British Amer i.e., British Amer and RepliCel Life go up and down completely randomly.
Pair Corralation between British Amer and RepliCel Life
Assuming the 90 days horizon biOasis Technologies is expected to generate 9.32 times more return on investment than RepliCel Life. However, British Amer is 9.32 times more volatile than RepliCel Life Sciences. It trades about 0.09 of its potential returns per unit of risk. RepliCel Life Sciences is currently generating about 0.0 per unit of risk. If you would invest 16.00 in biOasis Technologies on August 26, 2024 and sell it today you would lose (15.50) from holding biOasis Technologies or give up 96.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
biOasis Technologies vs. RepliCel Life Sciences
Performance |
| Timeline |
| biOasis Technologies |
| RepliCel Life Sciences |
British Amer and RepliCel Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with British Amer and RepliCel Life
The main advantage of trading using opposite British Amer and RepliCel Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Amer position performs unexpectedly, RepliCel Life 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 RepliCel Life will offset losses from the drop in RepliCel Life's long position.| British Amer vs. Western Copper and | British Amer vs. Arbor Metals Corp | British Amer vs. VersaBank | British Amer vs. Definity Financial Corp |
| RepliCel Life vs. Sirona Biochem Corp | RepliCel Life vs. Quest PharmaTech | RepliCel Life vs. biOasis Technologies | RepliCel Life vs. RepliCel 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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