Correlation Between CTi Biopharma and Adaptimmune Therapeutics
Can any of the company-specific risk be diversified away by investing in both CTi Biopharma and Adaptimmune 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 CTi Biopharma and Adaptimmune Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTi Biopharma Corp and Adaptimmune Therapeutics Plc, you can compare the effects of market volatilities on CTi Biopharma and Adaptimmune 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 CTi Biopharma with a short position of Adaptimmune Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTi Biopharma and Adaptimmune Therapeutics.
Diversification Opportunities for CTi Biopharma and Adaptimmune Therapeutics
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTi and Adaptimmune is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding CTi Biopharma Corp and Adaptimmune Therapeutics Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptimmune Therapeutics and CTi Biopharma 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 CTi Biopharma Corp are associated (or correlated) with Adaptimmune Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptimmune Therapeutics has no effect on the direction of CTi Biopharma i.e., CTi Biopharma and Adaptimmune Therapeutics go up and down completely randomly.
Pair Corralation between CTi Biopharma and Adaptimmune Therapeutics
Given the investment horizon of 90 days CTi Biopharma is expected to generate 4.65 times less return on investment than Adaptimmune Therapeutics. But when comparing it to its historical volatility, CTi Biopharma Corp is 59.45 times less risky than Adaptimmune Therapeutics. It trades about 0.11 of its potential returns per unit of risk. Adaptimmune Therapeutics Plc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Adaptimmune Therapeutics Plc on September 2, 2024 and sell it today you would lose (32.00) from holding Adaptimmune Therapeutics Plc or give up 30.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 2.96% |
| Values | Daily Returns |
CTi Biopharma Corp vs. Adaptimmune Therapeutics Plc
Performance |
| Timeline |
| CTi Biopharma Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adaptimmune Therapeutics |
CTi Biopharma and Adaptimmune Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTi Biopharma and Adaptimmune Therapeutics
The main advantage of trading using opposite CTi Biopharma and Adaptimmune Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTi Biopharma position performs unexpectedly, Adaptimmune 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 Adaptimmune Therapeutics will offset losses from the drop in Adaptimmune Therapeutics' long position.| CTi Biopharma vs. Rigel Pharmaceuticals | CTi Biopharma vs. Fortress Biotech | CTi Biopharma vs. Reviva Pharmaceuticals Holdings | CTi Biopharma vs. Protalix Biotherapeutics |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |