Correlation Between Century Therapeutics and BOS Better
Can any of the company-specific risk be diversified away by investing in both Century Therapeutics and BOS Better 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 Century Therapeutics and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Therapeutics and BOS Better Online, you can compare the effects of market volatilities on Century Therapeutics and BOS Better 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 Century Therapeutics with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Therapeutics and BOS Better.
Diversification Opportunities for Century Therapeutics and BOS Better
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Century and BOS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Century Therapeutics and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online and Century Therapeutics 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 Century Therapeutics are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Century Therapeutics i.e., Century Therapeutics and BOS Better go up and down completely randomly.
Pair Corralation between Century Therapeutics and BOS Better
Given the investment horizon of 90 days Century Therapeutics is expected to under-perform the BOS Better. In addition to that, Century Therapeutics is 5.12 times more volatile than BOS Better Online. It trades about -0.02 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.4 per unit of volatility. If you would invest 309.00 in BOS Better Online on September 14, 2024 and sell it today you would earn a total of 34.00 from holding BOS Better Online or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Therapeutics vs. BOS Better Online
Performance |
| Timeline |
| Century Therapeutics |
| BOS Better Online |
Century Therapeutics and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Therapeutics and BOS Better
The main advantage of trading using opposite Century Therapeutics and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Therapeutics position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.| Century Therapeutics vs. Edgewise Therapeutics | Century Therapeutics vs. C4 Therapeutics | Century Therapeutics vs. Mineralys Therapeutics, Common | Century Therapeutics vs. Cullinan Oncology LLC |
| BOS Better vs. Passage Bio | BOS Better vs. Black Diamond Therapeutics | BOS Better vs. Alector | BOS Better vs. Century 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |