Correlation Between Passage Bio and Ambrx Biopharma
Can any of the company-specific risk be diversified away by investing in both Passage Bio and Ambrx Biopharma 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 Passage Bio and Ambrx Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Ambrx Biopharma American, you can compare the effects of market volatilities on Passage Bio and Ambrx Biopharma 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 Passage Bio with a short position of Ambrx Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Ambrx Biopharma.
Diversification Opportunities for Passage Bio and Ambrx Biopharma
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Passage and Ambrx is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Ambrx Biopharma American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrx Biopharma American and Passage Bio 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 Passage Bio are associated (or correlated) with Ambrx Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrx Biopharma American has no effect on the direction of Passage Bio i.e., Passage Bio and Ambrx Biopharma go up and down completely randomly.
Pair Corralation between Passage Bio and Ambrx Biopharma
If you would invest 66.00 in Passage Bio on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Passage Bio or generate 71.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Passage Bio vs. Ambrx Biopharma American
Performance |
| Timeline |
| Passage Bio |
| Ambrx Biopharma American |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Passage Bio and Ambrx Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Ambrx Biopharma
The main advantage of trading using opposite Passage Bio and Ambrx Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage Bio position performs unexpectedly, Ambrx Biopharma 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 Ambrx Biopharma will offset losses from the drop in Ambrx Biopharma's long position.| Passage Bio vs. Tff Pharmaceuticals | Passage Bio vs. Eliem Therapeutics | Passage Bio vs. Inhibrx | Passage Bio vs. Enliven Therapeutics |
| Ambrx Biopharma vs. Immix Biopharma | Ambrx Biopharma vs. Cns Pharmaceuticals | Ambrx Biopharma vs. Sonnet Biotherapeutics Holdings | Ambrx Biopharma vs. Enveric Biosciences |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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