Correlation Between MaxCyte and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both MaxCyte and Sight Sciences 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 MaxCyte and Sight Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxCyte and Sight Sciences, you can compare the effects of market volatilities on MaxCyte and Sight Sciences 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 MaxCyte with a short position of Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxCyte and Sight Sciences.
Diversification Opportunities for MaxCyte and Sight Sciences
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MaxCyte and Sight is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences and MaxCyte 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 MaxCyte are associated (or correlated) with Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of MaxCyte i.e., MaxCyte and Sight Sciences go up and down completely randomly.
Pair Corralation between MaxCyte and Sight Sciences
Given the investment horizon of 90 days MaxCyte is expected to generate 0.75 times more return on investment than Sight Sciences. However, MaxCyte is 1.34 times less risky than Sight Sciences. It trades about 0.0 of its potential returns per unit of risk. Sight Sciences is currently generating about -0.21 per unit of risk. If you would invest 357.00 in MaxCyte on August 30, 2024 and sell it today you would lose (5.00) from holding MaxCyte or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MaxCyte vs. Sight Sciences
Performance |
| Timeline |
| MaxCyte |
| Sight Sciences |
MaxCyte and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxCyte and Sight Sciences
The main advantage of trading using opposite MaxCyte and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxCyte position performs unexpectedly, Sight Sciences 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.| MaxCyte vs. ReShape Lifesciences | MaxCyte vs. Bone Biologics Corp | MaxCyte vs. Tivic Health Systems | MaxCyte vs. Nuwellis |
| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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