Correlation Between HCW Biologics and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both HCW Biologics and Abcellera Biologics 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 HCW Biologics and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCW Biologics and Abcellera Biologics, you can compare the effects of market volatilities on HCW Biologics and Abcellera Biologics 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 HCW Biologics with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCW Biologics and Abcellera Biologics.
Diversification Opportunities for HCW Biologics and Abcellera Biologics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HCW and Abcellera is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HCW Biologics and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and HCW Biologics 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 HCW Biologics are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of HCW Biologics i.e., HCW Biologics and Abcellera Biologics go up and down completely randomly.
Pair Corralation between HCW Biologics and Abcellera Biologics
Given the investment horizon of 90 days HCW Biologics is expected to generate 8.06 times more return on investment than Abcellera Biologics. However, HCW Biologics is 8.06 times more volatile than Abcellera Biologics. It trades about 0.05 of its potential returns per unit of risk. Abcellera Biologics is currently generating about -0.07 per unit of risk. If you would invest 110.00 in HCW Biologics on August 25, 2024 and sell it today you would lose (33.00) from holding HCW Biologics or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
HCW Biologics vs. Abcellera Biologics
Performance |
| Timeline |
| HCW Biologics |
| Abcellera Biologics |
HCW Biologics and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCW Biologics and Abcellera Biologics
The main advantage of trading using opposite HCW Biologics and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCW Biologics position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| HCW Biologics vs. Anebulo Pharmaceuticals | HCW Biologics vs. Rezolute | HCW Biologics vs. Eliem Therapeutics | HCW Biologics vs. Molecular Partners AG |
| Abcellera Biologics vs. Eliem Therapeutics | Abcellera Biologics vs. HCW Biologics | Abcellera Biologics vs. RenovoRx | Abcellera Biologics vs. Scpharmaceuticals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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