Correlation Between Helix BioPharma and Theratechnologies
Can any of the company-specific risk be diversified away by investing in both Helix BioPharma and Theratechnologies 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 Theratechnologies 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 Theratechnologies, you can compare the effects of market volatilities on Helix BioPharma and Theratechnologies 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 Theratechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix BioPharma and Theratechnologies.
Diversification Opportunities for Helix BioPharma and Theratechnologies
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Helix and Theratechnologies is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Helix BioPharma Corp and Theratechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Theratechnologies 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 Theratechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Theratechnologies has no effect on the direction of Helix BioPharma i.e., Helix BioPharma and Theratechnologies go up and down completely randomly.
Pair Corralation between Helix BioPharma and Theratechnologies
Assuming the 90 days trading horizon Helix BioPharma Corp is expected to under-perform the Theratechnologies. In addition to that, Helix BioPharma is 3.91 times more volatile than Theratechnologies. It trades about -0.04 of its total potential returns per unit of risk. Theratechnologies is currently generating about 0.04 per unit of volatility. If you would invest 169.00 in Theratechnologies on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Theratechnologies or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helix BioPharma Corp vs. Theratechnologies
Performance |
| Timeline |
| Helix BioPharma Corp |
| Theratechnologies |
Helix BioPharma and Theratechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix BioPharma and Theratechnologies
The main advantage of trading using opposite Helix BioPharma and Theratechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix BioPharma position performs unexpectedly, Theratechnologies 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 Theratechnologies will offset losses from the drop in Theratechnologies' long position.| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
| Theratechnologies vs. Quipt Home Medical | Theratechnologies vs. Rogers Communications | Theratechnologies vs. Data Communications Management | Theratechnologies vs. Stampede Drilling |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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