Correlation Between Lineage Cell and Awakn Life
Can any of the company-specific risk be diversified away by investing in both Lineage Cell and Awakn Life 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 Lineage Cell and Awakn Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lineage Cell Therapeutics and Awakn Life Sciences, you can compare the effects of market volatilities on Lineage Cell and Awakn Life 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 Lineage Cell with a short position of Awakn Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lineage Cell and Awakn Life.
Diversification Opportunities for Lineage Cell and Awakn Life
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lineage and Awakn is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and Awakn Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awakn Life Sciences and Lineage Cell 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 Lineage Cell Therapeutics are associated (or correlated) with Awakn Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awakn Life Sciences has no effect on the direction of Lineage Cell i.e., Lineage Cell and Awakn Life go up and down completely randomly.
Pair Corralation between Lineage Cell and Awakn Life
If you would invest 52.00 in Lineage Cell Therapeutics on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Lineage Cell Therapeutics or generate 21.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Lineage Cell Therapeutics vs. Awakn Life Sciences
Performance |
| Timeline |
| Lineage Cell Therapeutics |
| Awakn Life Sciences |
Lineage Cell and Awakn Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lineage Cell and Awakn Life
The main advantage of trading using opposite Lineage Cell and Awakn Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell position performs unexpectedly, Awakn Life 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 Awakn Life will offset losses from the drop in Awakn Life's long position.| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
| Awakn Life vs. Nova Mentis Life | Awakn Life vs. PsyBio Therapeutics Corp | Awakn Life vs. HAVN Life Sciences | Awakn Life vs. Cellectis 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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