Correlation Between Gamida Cell and BioLineRx
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and BioLineRx 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 Gamida Cell and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and BioLineRx, you can compare the effects of market volatilities on Gamida Cell and BioLineRx 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 Gamida Cell with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and BioLineRx.
Diversification Opportunities for Gamida Cell and BioLineRx
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamida and BioLineRx is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Gamida Cell 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 Gamida Cell are associated (or correlated) with BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of Gamida Cell i.e., Gamida Cell and BioLineRx go up and down completely randomly.
Pair Corralation between Gamida Cell and BioLineRx
If you would invest 140.00 in Gamida Cell on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Gamida Cell or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Gamida Cell vs. BioLineRx
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioLineRx |
Gamida Cell and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and BioLineRx
The main advantage of trading using opposite Gamida Cell and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, BioLineRx 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 BioLineRx will offset losses from the drop in BioLineRx's long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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