Correlation Between CBrain AS and Stayble Therapeutics
Can any of the company-specific risk be diversified away by investing in both CBrain AS and Stayble Therapeutics 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 CBrain AS and Stayble Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between cBrain AS and Stayble Therapeutics AB, you can compare the effects of market volatilities on CBrain AS and Stayble Therapeutics 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 CBrain AS with a short position of Stayble Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBrain AS and Stayble Therapeutics.
Diversification Opportunities for CBrain AS and Stayble Therapeutics
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBrain and Stayble is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding cBrain AS and Stayble Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stayble Therapeutics and CBrain AS 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 cBrain AS are associated (or correlated) with Stayble Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stayble Therapeutics has no effect on the direction of CBrain AS i.e., CBrain AS and Stayble Therapeutics go up and down completely randomly.
Pair Corralation between CBrain AS and Stayble Therapeutics
Assuming the 90 days trading horizon cBrain AS is expected to under-perform the Stayble Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, cBrain AS is 2.29 times less risky than Stayble Therapeutics. The stock trades about -0.02 of its potential returns per unit of risk. The Stayble Therapeutics AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Stayble Therapeutics AB on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Stayble Therapeutics AB or generate 46.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
cBrain AS vs. Stayble Therapeutics AB
Performance |
| Timeline |
| cBrain AS |
| Stayble Therapeutics |
CBrain AS and Stayble Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBrain AS and Stayble Therapeutics
The main advantage of trading using opposite CBrain AS and Stayble Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBrain AS position performs unexpectedly, Stayble Therapeutics 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 Stayble Therapeutics will offset losses from the drop in Stayble Therapeutics' long position.| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
| Stayble Therapeutics vs. Bavarian Nordic | Stayble Therapeutics vs. BioPorto | Stayble Therapeutics vs. Zaptec AS | Stayble Therapeutics vs. cBrain AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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