Correlation Between Gamida Cell and Evogene
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and Evogene 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 Evogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and Evogene, you can compare the effects of market volatilities on Gamida Cell and Evogene 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 Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and Evogene.
Diversification Opportunities for Gamida Cell and Evogene
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gamida and Evogene is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene 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 Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Gamida Cell i.e., Gamida Cell and Evogene go up and down completely randomly.
Pair Corralation between Gamida Cell and Evogene
Given the investment horizon of 90 days Gamida Cell is expected to generate 1.54 times more return on investment than Evogene. However, Gamida Cell is 1.54 times more volatile than Evogene. It trades about 0.05 of its potential returns per unit of risk. Evogene is currently generating about -0.03 per unit of risk. If you would invest 128.00 in Gamida Cell on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Gamida Cell or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.31% |
| Values | Daily Returns |
Gamida Cell vs. Evogene
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Evogene |
Gamida Cell and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and Evogene
The main advantage of trading using opposite Gamida Cell and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene's long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |