Correlation Between Catalyst Biosciences and Benitec Biopharma
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and Benitec Biopharma 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 Benitec Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Benitec Biopharma Ltd, you can compare the effects of market volatilities on Catalyst Biosciences and Benitec Biopharma 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 Benitec Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Benitec Biopharma.
Diversification Opportunities for Catalyst Biosciences and Benitec Biopharma
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catalyst and Benitec is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Benitec Biopharma Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benitec Biopharma 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 Benitec Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benitec Biopharma has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and Benitec Biopharma go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Benitec Biopharma
If you would invest 855.00 in Benitec Biopharma Ltd on August 25, 2024 and sell it today you would earn a total of 194.00 from holding Benitec Biopharma Ltd or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Catalyst Biosciences vs. Benitec Biopharma Ltd
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Benitec Biopharma |
Catalyst Biosciences and Benitec Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Benitec Biopharma
The main advantage of trading using opposite Catalyst Biosciences and Benitec Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, Benitec Biopharma 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 Benitec Biopharma will offset losses from the drop in Benitec Biopharma's long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Benitec Biopharma vs. Bio Path Holdings | Benitec Biopharma vs. Capricor Therapeutics | Benitec Biopharma vs. NextCure | Benitec Biopharma vs. Aileron Therapeutics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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