Correlation Between Cellectis and BioCardia
Can any of the company-specific risk be diversified away by investing in both Cellectis and BioCardia 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 Cellectis and BioCardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellectis SA and BioCardia, you can compare the effects of market volatilities on Cellectis and BioCardia 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 Cellectis with a short position of BioCardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectis and BioCardia.
Diversification Opportunities for Cellectis and BioCardia
Poor diversification
The 3 months correlation between Cellectis and BioCardia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cellectis SA and BioCardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioCardia and Cellectis 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 Cellectis SA are associated (or correlated) with BioCardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioCardia has no effect on the direction of Cellectis i.e., Cellectis and BioCardia go up and down completely randomly.
Pair Corralation between Cellectis and BioCardia
Assuming the 90 days horizon Cellectis SA is expected to under-perform the BioCardia. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cellectis SA is 9.44 times less risky than BioCardia. The pink sheet trades about -0.09 of its potential returns per unit of risk. The BioCardia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2.21 in BioCardia on November 4, 2024 and sell it today you would lose (2.21) from holding BioCardia or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.17% |
| Values | Daily Returns |
Cellectis SA vs. BioCardia
Performance |
| Timeline |
| Cellectis SA |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cellectis and BioCardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellectis and BioCardia
The main advantage of trading using opposite Cellectis and BioCardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectis position performs unexpectedly, BioCardia 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 BioCardia will offset losses from the drop in BioCardia's long position.| Cellectis vs. Covalon Technologies | Cellectis vs. biOasis Technologies | Cellectis vs. Mosaic Immunoengineering | Cellectis vs. Biotron Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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