Correlation Between Cell Source and Polarityte
Can any of the company-specific risk be diversified away by investing in both Cell Source and Polarityte 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 Cell Source and Polarityte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cell Source and Polarityte, you can compare the effects of market volatilities on Cell Source and Polarityte 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 Cell Source with a short position of Polarityte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cell Source and Polarityte.
Diversification Opportunities for Cell Source and Polarityte
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cell and Polarityte is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cell Source and Polarityte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polarityte and Cell Source 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 Cell Source are associated (or correlated) with Polarityte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polarityte has no effect on the direction of Cell Source i.e., Cell Source and Polarityte go up and down completely randomly.
Pair Corralation between Cell Source and Polarityte
If you would invest 47.00 in Cell Source on August 24, 2024 and sell it today you would earn a total of 9.00 from holding Cell Source or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cell Source vs. Polarityte
Performance |
| Timeline |
| Cell Source |
| Polarityte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cell Source and Polarityte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cell Source and Polarityte
The main advantage of trading using opposite Cell Source and Polarityte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cell Source position performs unexpectedly, Polarityte 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 Polarityte will offset losses from the drop in Polarityte's long position.| Cell Source vs. Pharming Group NV | Cell Source vs. Kane Biotech | Cell Source vs. Health Sciences Gr | Cell Source vs. MedMira |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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