Correlation Between Lexaria Bioscience and Cellectar Biosciences
Can any of the company-specific risk be diversified away by investing in both Lexaria Bioscience and Cellectar Biosciences 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 Lexaria Bioscience and Cellectar Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexaria Bioscience Corp and Cellectar Biosciences, you can compare the effects of market volatilities on Lexaria Bioscience and Cellectar Biosciences 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 Lexaria Bioscience with a short position of Cellectar Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexaria Bioscience and Cellectar Biosciences.
Diversification Opportunities for Lexaria Bioscience and Cellectar Biosciences
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lexaria and Cellectar is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lexaria Bioscience Corp and Cellectar Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectar Biosciences and Lexaria Bioscience 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 Lexaria Bioscience Corp are associated (or correlated) with Cellectar Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectar Biosciences has no effect on the direction of Lexaria Bioscience i.e., Lexaria Bioscience and Cellectar Biosciences go up and down completely randomly.
Pair Corralation between Lexaria Bioscience and Cellectar Biosciences
Given the investment horizon of 90 days Lexaria Bioscience Corp is expected to generate 0.61 times more return on investment than Cellectar Biosciences. However, Lexaria Bioscience Corp is 1.65 times less risky than Cellectar Biosciences. It trades about -0.02 of its potential returns per unit of risk. Cellectar Biosciences is currently generating about -0.16 per unit of risk. If you would invest 293.00 in Lexaria Bioscience Corp on September 13, 2024 and sell it today you would lose (68.00) from holding Lexaria Bioscience Corp or give up 23.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexaria Bioscience Corp vs. Cellectar Biosciences
Performance |
| Timeline |
| Lexaria Bioscience Corp |
| Cellectar Biosciences |
Lexaria Bioscience and Cellectar Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexaria Bioscience and Cellectar Biosciences
The main advantage of trading using opposite Lexaria Bioscience and Cellectar Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexaria Bioscience position performs unexpectedly, Cellectar Biosciences 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 Cellectar Biosciences will offset losses from the drop in Cellectar Biosciences' long position.| Lexaria Bioscience vs. Revelation Biosciences | Lexaria Bioscience vs. Zura Bio Limited | Lexaria Bioscience vs. Phio Pharmaceuticals Corp | Lexaria Bioscience vs. ZyVersa Therapeutics |
| Cellectar Biosciences vs. Monopar Therapeutics | Cellectar Biosciences vs. Pulmatrix | Cellectar Biosciences vs. Tenax Therapeutics | Cellectar Biosciences vs. Bio Path Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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