Correlation Between LIFE Old and Gelesis Holdings
Can any of the company-specific risk be diversified away by investing in both LIFE Old and Gelesis Holdings 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 LIFE Old and Gelesis Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFE Old and Gelesis Holdings, you can compare the effects of market volatilities on LIFE Old and Gelesis Holdings 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 LIFE Old with a short position of Gelesis Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFE Old and Gelesis Holdings.
Diversification Opportunities for LIFE Old and Gelesis Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LIFE and Gelesis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LIFE Old and Gelesis Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelesis Holdings and LIFE Old 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 LIFE Old are associated (or correlated) with Gelesis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelesis Holdings has no effect on the direction of LIFE Old i.e., LIFE Old and Gelesis Holdings go up and down completely randomly.
Pair Corralation between LIFE Old and Gelesis Holdings
If you would invest (100.00) in Gelesis Holdings on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Gelesis Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFE Old vs. Gelesis Holdings
Performance |
| Timeline |
| LIFE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gelesis Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIFE Old and Gelesis Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFE Old and Gelesis Holdings
The main advantage of trading using opposite LIFE Old and Gelesis Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFE Old position performs unexpectedly, Gelesis Holdings 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 Gelesis Holdings will offset losses from the drop in Gelesis Holdings' long position.| LIFE Old vs. Mereo BioPharma Group | LIFE Old vs. Terns Pharmaceuticals | LIFE Old vs. PDS Biotechnology Corp | LIFE Old vs. Inozyme Pharma |
| Gelesis Holdings vs. Fidus Investment Corp | Gelesis Holdings vs. Inhibrx | Gelesis Holdings vs. Apogee Therapeutics, Common | Gelesis Holdings vs. Kingboard Chemical 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 CEOs Directory module to screen CEOs from public companies around the world.
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