Correlation Between Elevation Oncology and Cellink AB
Can any of the company-specific risk be diversified away by investing in both Elevation Oncology and Cellink AB 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 Elevation Oncology and Cellink AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elevation Oncology and Cellink AB, you can compare the effects of market volatilities on Elevation Oncology and Cellink AB 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 Elevation Oncology with a short position of Cellink AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevation Oncology and Cellink AB.
Diversification Opportunities for Elevation Oncology and Cellink AB
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elevation and Cellink is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Elevation Oncology and Cellink AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellink AB and Elevation Oncology 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 Elevation Oncology are associated (or correlated) with Cellink AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellink AB has no effect on the direction of Elevation Oncology i.e., Elevation Oncology and Cellink AB go up and down completely randomly.
Pair Corralation between Elevation Oncology and Cellink AB
Given the investment horizon of 90 days Elevation Oncology is expected to generate 1.91 times more return on investment than Cellink AB. However, Elevation Oncology is 1.91 times more volatile than Cellink AB. It trades about 0.09 of its potential returns per unit of risk. Cellink AB is currently generating about -0.05 per unit of risk. If you would invest 52.00 in Elevation Oncology on November 2, 2024 and sell it today you would earn a total of 15.00 from holding Elevation Oncology or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Elevation Oncology vs. Cellink AB
Performance |
| Timeline |
| Elevation Oncology |
| Cellink AB |
Elevation Oncology and Cellink AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elevation Oncology and Cellink AB
The main advantage of trading using opposite Elevation Oncology and Cellink AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevation Oncology position performs unexpectedly, Cellink AB 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 Cellink AB will offset losses from the drop in Cellink AB's long position.| Elevation Oncology vs. Ocean Biomedical | Elevation Oncology vs. Zura Bio Limited | Elevation Oncology vs. Enveric Biosciences | Elevation Oncology vs. Hepion Pharmaceuticals |
| Cellink AB vs. Aurora Spine | Cellink AB vs. Ainos Inc | Cellink AB vs. Armm Inc | Cellink AB vs. Bone Biologics Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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