Correlation Between Catalyst Biosciences and Acasti Pharma
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and Acasti Pharma 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 Catalyst Biosciences and Acasti Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Acasti Pharma, you can compare the effects of market volatilities on Catalyst Biosciences and Acasti Pharma 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 Catalyst Biosciences with a short position of Acasti Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Acasti Pharma.
Diversification Opportunities for Catalyst Biosciences and Acasti Pharma
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Catalyst and Acasti is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Acasti Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acasti Pharma and Catalyst Biosciences 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 Catalyst Biosciences are associated (or correlated) with Acasti Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acasti Pharma has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and Acasti Pharma go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Acasti Pharma
If you would invest 337.00 in Acasti Pharma on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Acasti Pharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Biosciences vs. Acasti Pharma
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acasti Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Catalyst Biosciences and Acasti Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Acasti Pharma
The main advantage of trading using opposite Catalyst Biosciences and Acasti Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, Acasti Pharma 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 Acasti Pharma will offset losses from the drop in Acasti Pharma's long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Acasti Pharma vs. Tonix Pharmaceuticals Holding | Acasti Pharma vs. Jaguar Animal Health | Acasti Pharma vs. Ibio Inc | Acasti Pharma vs. Akari Therapeutics 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 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
| 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 | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |