Correlation Between Generation Bio and Ambrx Biopharma
Can any of the company-specific risk be diversified away by investing in both Generation Bio and Ambrx 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 Generation Bio and Ambrx Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Bio Co and Ambrx Biopharma American, you can compare the effects of market volatilities on Generation Bio and Ambrx 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 Generation Bio with a short position of Ambrx Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Bio and Ambrx Biopharma.
Diversification Opportunities for Generation Bio and Ambrx Biopharma
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Generation and Ambrx is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Generation Bio Co and Ambrx Biopharma American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrx Biopharma American and Generation Bio 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 Generation Bio Co are associated (or correlated) with Ambrx Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrx Biopharma American has no effect on the direction of Generation Bio i.e., Generation Bio and Ambrx Biopharma go up and down completely randomly.
Pair Corralation between Generation Bio and Ambrx Biopharma
If you would invest 1,573 in Ambrx Biopharma American on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Ambrx Biopharma American or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Generation Bio Co vs. Ambrx Biopharma American
Performance |
| Timeline |
| Generation Bio |
| Ambrx Biopharma American |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Generation Bio and Ambrx Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Bio and Ambrx Biopharma
The main advantage of trading using opposite Generation Bio and Ambrx Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Bio position performs unexpectedly, Ambrx 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 Ambrx Biopharma will offset losses from the drop in Ambrx Biopharma's long position.| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
| Ambrx Biopharma vs. Immix Biopharma | Ambrx Biopharma vs. Cns Pharmaceuticals | Ambrx Biopharma vs. Sonnet Biotherapeutics Holdings | Ambrx Biopharma vs. Enveric Biosciences |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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