Correlation Between Comera Life and Armata Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Comera Life and Armata Pharmaceuticals 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 Comera Life and Armata Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comera Life Sciences and Armata Pharmaceuticals, you can compare the effects of market volatilities on Comera Life and Armata Pharmaceuticals 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 Comera Life with a short position of Armata Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comera Life and Armata Pharmaceuticals.
Diversification Opportunities for Comera Life and Armata Pharmaceuticals
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Comera and Armata is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Comera Life Sciences and Armata Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armata Pharmaceuticals and Comera Life 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 Comera Life Sciences are associated (or correlated) with Armata Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armata Pharmaceuticals has no effect on the direction of Comera Life i.e., Comera Life and Armata Pharmaceuticals go up and down completely randomly.
Pair Corralation between Comera Life and Armata Pharmaceuticals
Given the investment horizon of 90 days Comera Life Sciences is expected to generate 1.2 times more return on investment than Armata Pharmaceuticals. However, Comera Life is 1.2 times more volatile than Armata Pharmaceuticals. It trades about 0.15 of its potential returns per unit of risk. Armata Pharmaceuticals is currently generating about 0.05 per unit of risk. If you would invest 50.00 in Comera Life Sciences on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Comera Life Sciences or generate 32.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Comera Life Sciences vs. Armata Pharmaceuticals
Performance |
| Timeline |
| Comera Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Armata Pharmaceuticals |
Comera Life and Armata Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comera Life and Armata Pharmaceuticals
The main advantage of trading using opposite Comera Life and Armata Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comera Life position performs unexpectedly, Armata Pharmaceuticals 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 Armata Pharmaceuticals will offset losses from the drop in Armata Pharmaceuticals' long position.| Comera Life vs. SAB Biotherapeutics | Comera Life vs. Processa Pharmaceuticals | Comera Life vs. Third Harmonic Bio | Comera Life vs. Indaptus 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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