Correlation Between Fortress Biotech and CTi Biopharma
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and CTi Biopharma 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 CTi Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and CTi Biopharma Corp, you can compare the effects of market volatilities on Fortress Biotech and CTi Biopharma 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 CTi Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and CTi Biopharma.
Diversification Opportunities for Fortress Biotech and CTi Biopharma
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fortress and CTi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and CTi Biopharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTi Biopharma Corp 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 CTi Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTi Biopharma Corp has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and CTi Biopharma go up and down completely randomly.
Pair Corralation between Fortress Biotech and CTi Biopharma
Given the investment horizon of 90 days Fortress Biotech is expected to under-perform the CTi Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Fortress Biotech is 1.18 times less risky than CTi Biopharma. The stock trades about -0.02 of its potential returns per unit of risk. The CTi Biopharma Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 564.00 in CTi Biopharma Corp on August 29, 2024 and sell it today you would earn a total of 345.00 from holding CTi Biopharma Corp or generate 61.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.68% |
| Values | Daily Returns |
Fortress Biotech vs. CTi Biopharma Corp
Performance |
| Timeline |
| Fortress Biotech |
| CTi Biopharma Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and CTi Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and CTi Biopharma
The main advantage of trading using opposite Fortress Biotech and CTi Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, CTi Biopharma 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 CTi Biopharma will offset losses from the drop in CTi Biopharma'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 |
| CTi Biopharma vs. Rigel Pharmaceuticals | CTi Biopharma vs. Fortress Biotech | CTi Biopharma vs. Reviva Pharmaceuticals Holdings | CTi Biopharma vs. Protalix Biotherapeutics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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