Correlation Between City View and Emergent Biosolutions
Can any of the company-specific risk be diversified away by investing in both City View and Emergent Biosolutions 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 City View and Emergent Biosolutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City View Green and Emergent Biosolutions, you can compare the effects of market volatilities on City View and Emergent Biosolutions 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 City View with a short position of Emergent Biosolutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of City View and Emergent Biosolutions.
Diversification Opportunities for City View and Emergent Biosolutions
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between City and Emergent is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding City View Green and Emergent Biosolutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emergent Biosolutions and City View 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 City View Green are associated (or correlated) with Emergent Biosolutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emergent Biosolutions has no effect on the direction of City View i.e., City View and Emergent Biosolutions go up and down completely randomly.
Pair Corralation between City View and Emergent Biosolutions
Assuming the 90 days horizon City View Green is expected to generate 2.65 times more return on investment than Emergent Biosolutions. However, City View is 2.65 times more volatile than Emergent Biosolutions. It trades about 0.21 of its potential returns per unit of risk. Emergent Biosolutions is currently generating about 0.11 per unit of risk. If you would invest 0.69 in City View Green on September 1, 2024 and sell it today you would earn a total of 0.66 from holding City View Green or generate 95.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
City View Green vs. Emergent Biosolutions
Performance |
| Timeline |
| City View Green |
| Emergent Biosolutions |
City View and Emergent Biosolutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City View and Emergent Biosolutions
The main advantage of trading using opposite City View and Emergent Biosolutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City View position performs unexpectedly, Emergent Biosolutions 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 Emergent Biosolutions will offset losses from the drop in Emergent Biosolutions' long position.| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View vs. Ravenquest Biomed |
| Emergent Biosolutions vs. Tff Pharmaceuticals | Emergent Biosolutions vs. Eliem Therapeutics | Emergent Biosolutions vs. Inhibrx | Emergent Biosolutions vs. Enliven Therapeutics |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |