Correlation Between Emergent Biosolutions and Carmell Therapeutics
Can any of the company-specific risk be diversified away by investing in both Emergent Biosolutions and Carmell Therapeutics 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 Emergent Biosolutions and Carmell Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emergent Biosolutions and Carmell Therapeutics, you can compare the effects of market volatilities on Emergent Biosolutions and Carmell Therapeutics 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 Emergent Biosolutions with a short position of Carmell Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emergent Biosolutions and Carmell Therapeutics.
Diversification Opportunities for Emergent Biosolutions and Carmell Therapeutics
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emergent and Carmell is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Biosolutions and Carmell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmell Therapeutics and Emergent Biosolutions 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 Emergent Biosolutions are associated (or correlated) with Carmell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmell Therapeutics has no effect on the direction of Emergent Biosolutions i.e., Emergent Biosolutions and Carmell Therapeutics go up and down completely randomly.
Pair Corralation between Emergent Biosolutions and Carmell Therapeutics
Considering the 90-day investment horizon Emergent Biosolutions is expected to generate 0.48 times more return on investment than Carmell Therapeutics. However, Emergent Biosolutions is 2.1 times less risky than Carmell Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Carmell Therapeutics is currently generating about -0.81 per unit of risk. If you would invest 960.00 in Emergent Biosolutions on August 31, 2024 and sell it today you would earn a total of 51.00 from holding Emergent Biosolutions or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 18.18% |
| Values | Daily Returns |
Emergent Biosolutions vs. Carmell Therapeutics
Performance |
| Timeline |
| Emergent Biosolutions |
| Carmell Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Emergent Biosolutions and Carmell Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emergent Biosolutions and Carmell Therapeutics
The main advantage of trading using opposite Emergent Biosolutions and Carmell Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Biosolutions position performs unexpectedly, Carmell Therapeutics 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 Carmell Therapeutics will offset losses from the drop in Carmell Therapeutics' long position.| Emergent Biosolutions vs. Bausch Health Companies | Emergent Biosolutions vs. Haleon plc | Emergent Biosolutions vs. Intracellular Th |
| Carmell Therapeutics vs. ZyVersa Therapeutics | Carmell Therapeutics vs. Sonnet Biotherapeutics Holdings | Carmell Therapeutics vs. Revelation Biosciences | Carmell Therapeutics vs. Quoin Pharmaceuticals Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |