Correlation Between Fortress Biotech and Aceragen
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Aceragen 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 Fortress Biotech and Aceragen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Aceragen, you can compare the effects of market volatilities on Fortress Biotech and Aceragen 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 Fortress Biotech with a short position of Aceragen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Aceragen.
Diversification Opportunities for Fortress Biotech and Aceragen
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortress and Aceragen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Aceragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aceragen and Fortress Biotech 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 Fortress Biotech are associated (or correlated) with Aceragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aceragen has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Aceragen go up and down completely randomly.
Pair Corralation between Fortress Biotech and Aceragen
If you would invest 170.00 in Fortress Biotech on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Fortress Biotech or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fortress Biotech vs. Aceragen
Performance |
| Timeline |
| Fortress Biotech |
| Aceragen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and Aceragen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Aceragen
The main advantage of trading using opposite Fortress Biotech and Aceragen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Aceragen 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 Aceragen will offset losses from the drop in Aceragen's long position.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| Aceragen vs. Addex Therapeutics | Aceragen vs. Soligenix | Aceragen vs. Avenue Therapeutics | Aceragen vs. Akari Therapeutics PLC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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