Correlation Between Cabaletta Bio and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Cabaletta Bio and Fortress Biotech 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 Cabaletta Bio and Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabaletta Bio and Fortress Biotech, you can compare the effects of market volatilities on Cabaletta Bio and Fortress Biotech 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 Cabaletta Bio with a short position of Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabaletta Bio and Fortress Biotech.
Diversification Opportunities for Cabaletta Bio and Fortress Biotech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cabaletta and Fortress is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cabaletta Bio and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech and Cabaletta Bio 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 Cabaletta Bio are associated (or correlated) with Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Cabaletta Bio i.e., Cabaletta Bio and Fortress Biotech go up and down completely randomly.
Pair Corralation between Cabaletta Bio and Fortress Biotech
Given the investment horizon of 90 days Cabaletta Bio is expected to under-perform the Fortress Biotech. In addition to that, Cabaletta Bio is 2.44 times more volatile than Fortress Biotech. It trades about -0.05 of its total potential returns per unit of risk. Fortress Biotech is currently generating about -0.04 per unit of volatility. If you would invest 194.00 in Fortress Biotech on August 31, 2024 and sell it today you would lose (11.00) from holding Fortress Biotech or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabaletta Bio vs. Fortress Biotech
Performance |
| Timeline |
| Cabaletta Bio |
| Fortress Biotech |
Cabaletta Bio and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabaletta Bio and Fortress Biotech
The main advantage of trading using opposite Cabaletta Bio and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabaletta Bio position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| Cabaletta Bio vs. Revolution Medicines | Cabaletta Bio vs. Black Diamond Therapeutics | Cabaletta Bio vs. Passage Bio | Cabaletta Bio vs. 89bio Inc |
| Fortress Biotech vs. Cue Biopharma | Fortress Biotech vs. Eliem Therapeutics | Fortress Biotech vs. Inhibrx | Fortress Biotech vs. Molecular Partners AG |
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 Positions Ratings module to 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.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |