Correlation Between Gracell Biotechnologies and Ambrx Biopharma
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies 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 Gracell Biotechnologies and Ambrx Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gracell Biotechnologies and Ambrx Biopharma American, you can compare the effects of market volatilities on Gracell Biotechnologies 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 Gracell Biotechnologies with a short position of Ambrx Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and Ambrx Biopharma.
Diversification Opportunities for Gracell Biotechnologies and Ambrx Biopharma
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gracell and Ambrx is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies 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 Gracell Biotechnologies 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 Gracell Biotechnologies 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 Gracell Biotechnologies i.e., Gracell Biotechnologies and Ambrx Biopharma go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gracell Biotechnologies vs. Ambrx Biopharma American
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ambrx Biopharma American |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gracell Biotechnologies and Ambrx Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and Ambrx Biopharma
The main advantage of trading using opposite Gracell Biotechnologies and Ambrx Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies 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.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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