Correlation Between Catalyst Biosciences and Histogen
Can any of the company-specific risk be diversified away by investing in both Catalyst Biosciences and Histogen 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 Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Biosciences and Histogen, you can compare the effects of market volatilities on Catalyst Biosciences and Histogen 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 Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Biosciences and Histogen.
Diversification Opportunities for Catalyst Biosciences and Histogen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Histogen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Biosciences and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen 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 Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Catalyst Biosciences i.e., Catalyst Biosciences and Histogen go up and down completely randomly.
Pair Corralation between Catalyst Biosciences and Histogen
If you would invest 41.00 in Catalyst Biosciences on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Catalyst Biosciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Catalyst Biosciences vs. Histogen
Performance |
| Timeline |
| Catalyst Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Histogen |
Catalyst Biosciences and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Biosciences and Histogen
The main advantage of trading using opposite Catalyst Biosciences and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Biosciences position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Catalyst Biosciences vs. Akari Therapeutics PLC | Catalyst Biosciences vs. Benitec Biopharma Ltd | Catalyst Biosciences vs. Pulmatrix |
| Histogen vs. Eliem Therapeutics | Histogen vs. Scpharmaceuticals | Histogen vs. Milestone Pharmaceuticals | Histogen vs. Seres 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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