Correlation Between Cyclacel Pharmaceuticals and Histogen
Can any of the company-specific risk be diversified away by investing in both Cyclacel Pharmaceuticals and Histogen 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 Cyclacel Pharmaceuticals and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyclacel Pharmaceuticals and Histogen, you can compare the effects of market volatilities on Cyclacel Pharmaceuticals and Histogen 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 Cyclacel Pharmaceuticals with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyclacel Pharmaceuticals and Histogen.
Diversification Opportunities for Cyclacel Pharmaceuticals and Histogen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cyclacel and Histogen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cyclacel Pharmaceuticals and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Cyclacel 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 Cyclacel Pharmaceuticals are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Cyclacel Pharmaceuticals i.e., Cyclacel Pharmaceuticals and Histogen go up and down completely randomly.
Pair Corralation between Cyclacel Pharmaceuticals and Histogen
Given the investment horizon of 90 days Cyclacel Pharmaceuticals is expected to under-perform the Histogen. But the stock apears to be less risky and, when comparing its historical volatility, Cyclacel Pharmaceuticals is 1.57 times less risky than Histogen. The stock trades about -0.05 of its potential returns per unit of risk. The Histogen is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Histogen on August 29, 2024 and sell it today you would lose (98.00) from holding Histogen or give up 98.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cyclacel Pharmaceuticals vs. Histogen
Performance |
| Timeline |
| Cyclacel Pharmaceuticals |
| Histogen |
Cyclacel Pharmaceuticals and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyclacel Pharmaceuticals and Histogen
The main advantage of trading using opposite Cyclacel Pharmaceuticals and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclacel Pharmaceuticals position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Cyclacel Pharmaceuticals vs. Eliem Therapeutics | Cyclacel Pharmaceuticals vs. Ikena Oncology | Cyclacel Pharmaceuticals vs. Ovid Therapeutics | Cyclacel Pharmaceuticals vs. Connect Biopharma Holdings |
| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
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 CEOs Directory module to screen CEOs from public companies around the world.
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