Correlation Between Histogen and Protagenic Therapeutics
Can any of the company-specific risk be diversified away by investing in both Histogen and Protagenic Therapeutics 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 Histogen and Protagenic Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histogen and Protagenic Therapeutics, you can compare the effects of market volatilities on Histogen and Protagenic Therapeutics 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 Histogen with a short position of Protagenic Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histogen and Protagenic Therapeutics.
Diversification Opportunities for Histogen and Protagenic Therapeutics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Histogen and Protagenic is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Histogen and Protagenic Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protagenic Therapeutics and Histogen 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 Histogen are associated (or correlated) with Protagenic Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protagenic Therapeutics has no effect on the direction of Histogen i.e., Histogen and Protagenic Therapeutics go up and down completely randomly.
Pair Corralation between Histogen and Protagenic Therapeutics
Given the investment horizon of 90 days Histogen is expected to under-perform the Protagenic Therapeutics. In addition to that, Histogen is 2.06 times more volatile than Protagenic Therapeutics. It trades about -0.3 of its total potential returns per unit of risk. Protagenic Therapeutics is currently generating about 0.01 per unit of volatility. If you would invest 64.00 in Protagenic Therapeutics on August 30, 2024 and sell it today you would lose (4.20) from holding Protagenic Therapeutics or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histogen vs. Protagenic Therapeutics
Performance |
| Timeline |
| Histogen |
| Protagenic Therapeutics |
Histogen and Protagenic Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histogen and Protagenic Therapeutics
The main advantage of trading using opposite Histogen and Protagenic Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histogen position performs unexpectedly, Protagenic Therapeutics 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 Protagenic Therapeutics will offset losses from the drop in Protagenic Therapeutics' long position.| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
| Protagenic Therapeutics vs. Sino Biopharmaceutical Ltd | Protagenic Therapeutics vs. Eledon Pharmaceuticals | Protagenic Therapeutics vs. Rezolute | Protagenic Therapeutics vs. XOMA Corporation |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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