Correlation Between Helix BioPharma and Microbix Biosystems
Can any of the company-specific risk be diversified away by investing in both Helix BioPharma and Microbix Biosystems 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 Helix BioPharma and Microbix Biosystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helix BioPharma Corp and Microbix Biosystems, you can compare the effects of market volatilities on Helix BioPharma and Microbix Biosystems 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 Helix BioPharma with a short position of Microbix Biosystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix BioPharma and Microbix Biosystems.
Diversification Opportunities for Helix BioPharma and Microbix Biosystems
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helix and Microbix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Helix BioPharma Corp and Microbix Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbix Biosystems and Helix BioPharma 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 Helix BioPharma Corp are associated (or correlated) with Microbix Biosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbix Biosystems has no effect on the direction of Helix BioPharma i.e., Helix BioPharma and Microbix Biosystems go up and down completely randomly.
Pair Corralation between Helix BioPharma and Microbix Biosystems
Assuming the 90 days trading horizon Helix BioPharma Corp is expected to under-perform the Microbix Biosystems. In addition to that, Helix BioPharma is 6.4 times more volatile than Microbix Biosystems. It trades about -0.03 of its total potential returns per unit of risk. Microbix Biosystems is currently generating about -0.16 per unit of volatility. If you would invest 33.00 in Microbix Biosystems on August 29, 2024 and sell it today you would lose (2.00) from holding Microbix Biosystems or give up 6.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Helix BioPharma Corp vs. Microbix Biosystems
Performance |
| Timeline |
| Helix BioPharma Corp |
| Microbix Biosystems |
Helix BioPharma and Microbix Biosystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix BioPharma and Microbix Biosystems
The main advantage of trading using opposite Helix BioPharma and Microbix Biosystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix BioPharma position performs unexpectedly, Microbix Biosystems 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 Microbix Biosystems will offset losses from the drop in Microbix Biosystems' long position.| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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