Correlation Between Seres Therapeutics and SAB Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Seres Therapeutics and SAB Biotherapeutics 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 Seres Therapeutics and SAB Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seres Therapeutics and SAB Biotherapeutics, you can compare the effects of market volatilities on Seres Therapeutics and SAB Biotherapeutics 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 Seres Therapeutics with a short position of SAB Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seres Therapeutics and SAB Biotherapeutics.
Diversification Opportunities for Seres Therapeutics and SAB Biotherapeutics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seres and SAB is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Seres Therapeutics and SAB Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Biotherapeutics and Seres 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 Seres Therapeutics are associated (or correlated) with SAB Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Biotherapeutics has no effect on the direction of Seres Therapeutics i.e., Seres Therapeutics and SAB Biotherapeutics go up and down completely randomly.
Pair Corralation between Seres Therapeutics and SAB Biotherapeutics
Given the investment horizon of 90 days Seres Therapeutics is expected to generate 0.38 times more return on investment than SAB Biotherapeutics. However, Seres Therapeutics is 2.6 times less risky than SAB Biotherapeutics. It trades about 0.12 of its potential returns per unit of risk. SAB Biotherapeutics is currently generating about 0.01 per unit of risk. If you would invest 81.00 in Seres Therapeutics on September 4, 2024 and sell it today you would earn a total of 12.00 from holding Seres Therapeutics or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Seres Therapeutics vs. SAB Biotherapeutics
Performance |
| Timeline |
| Seres Therapeutics |
| SAB Biotherapeutics |
Seres Therapeutics and SAB Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seres Therapeutics and SAB Biotherapeutics
The main advantage of trading using opposite Seres Therapeutics and SAB Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seres Therapeutics position performs unexpectedly, SAB Biotherapeutics 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 SAB Biotherapeutics will offset losses from the drop in SAB Biotherapeutics' long position.| Seres Therapeutics vs. Candel Therapeutics | Seres Therapeutics vs. Cingulate Warrants | Seres Therapeutics vs. Unicycive Therapeutics | Seres Therapeutics vs. Quoin Pharmaceuticals Ltd |
| SAB Biotherapeutics vs. SAB Biotherapeutics | SAB Biotherapeutics vs. Jasper Therapeutics | SAB Biotherapeutics vs. NRx Pharmaceuticals | SAB Biotherapeutics vs. Surrozen Warrant |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |