Correlation Between GreenLight Biosciences and Comera Life
Can any of the company-specific risk be diversified away by investing in both GreenLight Biosciences and Comera Life 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 GreenLight Biosciences and Comera Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenLight Biosciences Holdings and Comera Life Sciences, you can compare the effects of market volatilities on GreenLight Biosciences and Comera Life 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 GreenLight Biosciences with a short position of Comera Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenLight Biosciences and Comera Life.
Diversification Opportunities for GreenLight Biosciences and Comera Life
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenLight and Comera is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GreenLight Biosciences Holding and Comera Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comera Life Sciences and GreenLight Biosciences 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 GreenLight Biosciences Holdings are associated (or correlated) with Comera Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comera Life Sciences has no effect on the direction of GreenLight Biosciences i.e., GreenLight Biosciences and Comera Life go up and down completely randomly.
Pair Corralation between GreenLight Biosciences and Comera Life
Assuming the 90 days horizon GreenLight Biosciences Holdings is expected to under-perform the Comera Life. In addition to that, GreenLight Biosciences is 2.36 times more volatile than Comera Life Sciences. It trades about -0.02 of its total potential returns per unit of risk. Comera Life Sciences is currently generating about -0.03 per unit of volatility. If you would invest 125.00 in Comera Life Sciences on September 4, 2024 and sell it today you would lose (59.00) from holding Comera Life Sciences or give up 47.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.37% |
| Values | Daily Returns |
GreenLight Biosciences Holding vs. Comera Life Sciences
Performance |
| Timeline |
| GreenLight Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Comera Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GreenLight Biosciences and Comera Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenLight Biosciences and Comera Life
The main advantage of trading using opposite GreenLight Biosciences and Comera Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenLight Biosciences position performs unexpectedly, Comera Life 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 Comera Life will offset losses from the drop in Comera Life's long position.The idea behind GreenLight Biosciences Holdings and Comera Life Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Comera Life vs. SAB Biotherapeutics | Comera Life vs. Processa Pharmaceuticals | Comera Life vs. Third Harmonic Bio | Comera Life vs. Indaptus Therapeutics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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