Correlation Between CTi Biopharma and Northwest Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both CTi Biopharma and Northwest Biotherapeutics 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 Northwest Biotherapeutics 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 Northwest Biotherapeutics, you can compare the effects of market volatilities on CTi Biopharma and Northwest Biotherapeutics 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 Northwest Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTi Biopharma and Northwest Biotherapeutics.
Diversification Opportunities for CTi Biopharma and Northwest Biotherapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTi and Northwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CTi Biopharma Corp and Northwest Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northwest Biotherapeutics 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 Northwest Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northwest Biotherapeutics has no effect on the direction of CTi Biopharma i.e., CTi Biopharma and Northwest Biotherapeutics go up and down completely randomly.
Pair Corralation between CTi Biopharma and Northwest Biotherapeutics
If you would invest 909.00 in CTi Biopharma Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CTi Biopharma Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CTi Biopharma Corp vs. Northwest Biotherapeutics
Performance |
| Timeline |
| CTi Biopharma Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northwest Biotherapeutics |
CTi Biopharma and Northwest Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTi Biopharma and Northwest Biotherapeutics
The main advantage of trading using opposite CTi Biopharma and Northwest Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTi Biopharma position performs unexpectedly, Northwest Biotherapeutics 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 Northwest Biotherapeutics will offset losses from the drop in Northwest Biotherapeutics' 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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |