Correlation Between MaxCyte and Tela Bio
Can any of the company-specific risk be diversified away by investing in both MaxCyte and Tela Bio 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 Tela Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxCyte and Tela Bio, you can compare the effects of market volatilities on MaxCyte and Tela Bio 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 Tela Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxCyte and Tela Bio.
Diversification Opportunities for MaxCyte and Tela Bio
Excellent diversification
The 3 months correlation between MaxCyte and Tela is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MaxCyte and Tela Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tela Bio 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 Tela Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tela Bio has no effect on the direction of MaxCyte i.e., MaxCyte and Tela Bio go up and down completely randomly.
Pair Corralation between MaxCyte and Tela Bio
Given the investment horizon of 90 days MaxCyte is expected to under-perform the Tela Bio. But the stock apears to be less risky and, when comparing its historical volatility, MaxCyte is 1.21 times less risky than Tela Bio. The stock trades about -0.41 of its potential returns per unit of risk. The Tela Bio is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Tela Bio on November 28, 2024 and sell it today you would lose (7.00) from holding Tela Bio or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MaxCyte vs. Tela Bio
Performance |
| Timeline |
| MaxCyte |
| Tela Bio |
MaxCyte and Tela Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxCyte and Tela Bio
The main advantage of trading using opposite MaxCyte and Tela Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxCyte position performs unexpectedly, Tela Bio 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 Tela Bio will offset losses from the drop in Tela Bio's long position.| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
| Tela Bio vs. Sight Sciences | Tela Bio vs. Tactile Systems Technology | Tela Bio vs. Clearpoint Neuro | Tela Bio vs. CVRx Inc |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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