Correlation Between Precision BioSciences and MiMedx
Can any of the company-specific risk be diversified away by investing in both Precision BioSciences and MiMedx 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 Precision BioSciences and MiMedx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Precision BioSciences and MiMedx Group, you can compare the effects of market volatilities on Precision BioSciences and MiMedx 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 Precision BioSciences with a short position of MiMedx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Precision BioSciences and MiMedx.
Diversification Opportunities for Precision BioSciences and MiMedx
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Precision and MiMedx is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Precision BioSciences and MiMedx Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiMedx Group and Precision BioSciences 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 Precision BioSciences are associated (or correlated) with MiMedx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiMedx Group has no effect on the direction of Precision BioSciences i.e., Precision BioSciences and MiMedx go up and down completely randomly.
Pair Corralation between Precision BioSciences and MiMedx
Given the investment horizon of 90 days Precision BioSciences is expected to under-perform the MiMedx. In addition to that, Precision BioSciences is 1.46 times more volatile than MiMedx Group. It trades about -0.04 of its total potential returns per unit of risk. MiMedx Group is currently generating about 0.07 per unit of volatility. If you would invest 387.00 in MiMedx Group on November 1, 2024 and sell it today you would earn a total of 504.00 from holding MiMedx Group or generate 130.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Precision BioSciences vs. MiMedx Group
Performance |
| Timeline |
| Precision BioSciences |
| MiMedx Group |
Precision BioSciences and MiMedx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Precision BioSciences and MiMedx
The main advantage of trading using opposite Precision BioSciences and MiMedx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Precision BioSciences position performs unexpectedly, MiMedx 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 MiMedx will offset losses from the drop in MiMedx's long position.| Precision BioSciences vs. X4 Pharmaceuticals | Precision BioSciences vs. Acumen Pharmaceuticals | Precision BioSciences vs. Inozyme Pharma | Precision BioSciences vs. Terns Pharmaceuticals |
| MiMedx vs. Monte Rosa Therapeutics | MiMedx vs. Design Therapeutics | MiMedx vs. Werewolf Therapeutics | MiMedx vs. Ikena Oncology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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