Correlation Between Centessa Pharmaceuticals and BGC
Can any of the company-specific risk be diversified away by investing in both Centessa Pharmaceuticals and BGC 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 Centessa Pharmaceuticals and BGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centessa Pharmaceuticals PLC and BGC Group, you can compare the effects of market volatilities on Centessa Pharmaceuticals and BGC 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 Centessa Pharmaceuticals with a short position of BGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centessa Pharmaceuticals and BGC.
Diversification Opportunities for Centessa Pharmaceuticals and BGC
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Centessa and BGC is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Centessa Pharmaceuticals PLC and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group and Centessa Pharmaceuticals 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 Centessa Pharmaceuticals PLC are associated (or correlated) with BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of Centessa Pharmaceuticals i.e., Centessa Pharmaceuticals and BGC go up and down completely randomly.
Pair Corralation between Centessa Pharmaceuticals and BGC
Given the investment horizon of 90 days Centessa Pharmaceuticals PLC is expected to generate 1.81 times more return on investment than BGC. However, Centessa Pharmaceuticals is 1.81 times more volatile than BGC Group. It trades about 0.09 of its potential returns per unit of risk. BGC Group is currently generating about 0.08 per unit of risk. If you would invest 388.00 in Centessa Pharmaceuticals PLC on August 30, 2024 and sell it today you would earn a total of 1,372 from holding Centessa Pharmaceuticals PLC or generate 353.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centessa Pharmaceuticals PLC vs. BGC Group
Performance |
| Timeline |
| Centessa Pharmaceuticals |
| BGC Group |
Centessa Pharmaceuticals and BGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centessa Pharmaceuticals and BGC
The main advantage of trading using opposite Centessa Pharmaceuticals and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centessa Pharmaceuticals position performs unexpectedly, BGC 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 BGC will offset losses from the drop in BGC's long position.| Centessa Pharmaceuticals vs. Bright Minds Biosciences | Centessa Pharmaceuticals vs. HP Inc | Centessa Pharmaceuticals vs. Intel | Centessa Pharmaceuticals vs. Chevron Corp |
| BGC vs. Raymond James Financial | BGC vs. Evercore Partners | BGC vs. Selective Insurance Group | BGC vs. Reinsurance Group of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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