Correlation Between CTi Biopharma and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both CTi Biopharma and Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech, you can compare the effects of market volatilities on CTi Biopharma and Fortress Biotech 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTi Biopharma and Fortress Biotech.
Diversification Opportunities for CTi Biopharma and Fortress Biotech
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CTi and Fortress is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CTi Biopharma Corp and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of CTi Biopharma i.e., CTi Biopharma and Fortress Biotech go up and down completely randomly.
Pair Corralation between CTi Biopharma and Fortress Biotech
Given the investment horizon of 90 days CTi Biopharma Corp is expected to generate 1.18 times more return on investment than Fortress Biotech. However, CTi Biopharma is 1.18 times more volatile than Fortress Biotech. It trades about 0.07 of its potential returns per unit of risk. Fortress Biotech is currently generating about -0.02 per unit of risk. If you would invest 564.00 in CTi Biopharma Corp on August 29, 2024 and sell it today you would earn a total of 345.00 from holding CTi Biopharma Corp or generate 61.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.68% |
| Values | Daily Returns |
CTi Biopharma Corp vs. Fortress Biotech
Performance |
| Timeline |
| CTi Biopharma Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fortress Biotech |
CTi Biopharma and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTi Biopharma and Fortress Biotech
The main advantage of trading using opposite CTi Biopharma and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTi Biopharma position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| CTi Biopharma vs. Rigel Pharmaceuticals | CTi Biopharma vs. Fortress Biotech | CTi Biopharma vs. Reviva Pharmaceuticals Holdings | CTi Biopharma vs. Protalix Biotherapeutics |
| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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