Correlation Between Fennec Pharmaceuticals and Bellicum Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Fennec Pharmaceuticals and Bellicum Pharmaceuticals 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 Fennec Pharmaceuticals and Bellicum Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fennec Pharmaceuticals and Bellicum Pharmaceuticals, you can compare the effects of market volatilities on Fennec Pharmaceuticals and Bellicum Pharmaceuticals 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 Fennec Pharmaceuticals with a short position of Bellicum Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fennec Pharmaceuticals and Bellicum Pharmaceuticals.
Diversification Opportunities for Fennec Pharmaceuticals and Bellicum Pharmaceuticals
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fennec and Bellicum is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fennec Pharmaceuticals and Bellicum Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellicum Pharmaceuticals and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals are associated (or correlated) with Bellicum Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellicum Pharmaceuticals has no effect on the direction of Fennec Pharmaceuticals i.e., Fennec Pharmaceuticals and Bellicum Pharmaceuticals go up and down completely randomly.
Pair Corralation between Fennec Pharmaceuticals and Bellicum Pharmaceuticals
If you would invest 479.00 in Fennec Pharmaceuticals on August 30, 2024 and sell it today you would earn a total of 122.00 from holding Fennec Pharmaceuticals or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fennec Pharmaceuticals vs. Bellicum Pharmaceuticals
Performance |
| Timeline |
| Fennec Pharmaceuticals |
| Bellicum Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fennec Pharmaceuticals and Bellicum Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fennec Pharmaceuticals and Bellicum Pharmaceuticals
The main advantage of trading using opposite Fennec Pharmaceuticals and Bellicum Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fennec Pharmaceuticals position performs unexpectedly, Bellicum Pharmaceuticals 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 Bellicum Pharmaceuticals will offset losses from the drop in Bellicum Pharmaceuticals' long position.| Fennec Pharmaceuticals vs. Molecular Partners AG | Fennec Pharmaceuticals vs. MediciNova | Fennec Pharmaceuticals vs. Anebulo Pharmaceuticals | Fennec Pharmaceuticals vs. Champions Oncology |
| Bellicum Pharmaceuticals vs. Cellectis SA | Bellicum Pharmaceuticals vs. Adaptimmune Therapeutics Plc | Bellicum Pharmaceuticals vs. Atara Biotherapeutics | Bellicum Pharmaceuticals vs. Affimed NV |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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