Correlation Between Century Therapeutics and Alpha Teknova
Can any of the company-specific risk be diversified away by investing in both Century Therapeutics and Alpha Teknova 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 Alpha Teknova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Therapeutics and Alpha Teknova, you can compare the effects of market volatilities on Century Therapeutics and Alpha Teknova 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 Alpha Teknova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Therapeutics and Alpha Teknova.
Diversification Opportunities for Century Therapeutics and Alpha Teknova
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Century and Alpha is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Century Therapeutics and Alpha Teknova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Teknova 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 Alpha Teknova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Teknova has no effect on the direction of Century Therapeutics i.e., Century Therapeutics and Alpha Teknova go up and down completely randomly.
Pair Corralation between Century Therapeutics and Alpha Teknova
Given the investment horizon of 90 days Century Therapeutics is expected to under-perform the Alpha Teknova. But the stock apears to be less risky and, when comparing its historical volatility, Century Therapeutics is 1.55 times less risky than Alpha Teknova. The stock trades about -0.09 of its potential returns per unit of risk. The Alpha Teknova is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 471.00 in Alpha Teknova on August 28, 2024 and sell it today you would earn a total of 248.00 from holding Alpha Teknova or generate 52.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Therapeutics vs. Alpha Teknova
Performance |
| Timeline |
| Century Therapeutics |
| Alpha Teknova |
Century Therapeutics and Alpha Teknova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Therapeutics and Alpha Teknova
The main advantage of trading using opposite Century Therapeutics and Alpha Teknova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Therapeutics position performs unexpectedly, Alpha Teknova 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 Alpha Teknova will offset losses from the drop in Alpha Teknova's long position.| Century Therapeutics vs. Eliem Therapeutics | Century Therapeutics vs. HCW Biologics | Century Therapeutics vs. Scpharmaceuticals | Century Therapeutics vs. Milestone Pharmaceuticals |
| Alpha Teknova vs. Collegium Pharmaceutical | Alpha Teknova vs. Phibro Animal Health | Alpha Teknova vs. ANI Pharmaceuticals | Alpha Teknova vs. Procaps Group SA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |