Correlation Between Catalyst Biosciences and ELYM Old
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and ELYM Old 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 ELYM Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and ELYM Old, you can compare the effects of market volatilities on Catalyst Biosciences and ELYM Old 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 ELYM Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and ELYM Old.
Diversification Opportunities for Catalyst Biosciences and ELYM Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and ELYM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and ELYM Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELYM Old 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 ELYM Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELYM Old has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and ELYM Old go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and ELYM Old
If you would invest (100.00) in ELYM Old on November 22, 2024 and sell it today you would earn a total of 100.00 from holding ELYM Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Biosciences vs. ELYM Old
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| ELYM Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Catalyst Biosciences and ELYM Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and ELYM Old
The main advantage of trading using opposite Catalyst Biosciences and ELYM Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, ELYM Old 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 ELYM Old will offset losses from the drop in ELYM Old's long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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