Correlation Between Protalix Biotherapeutics and CSL
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics and CSL 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 Protalix Biotherapeutics and CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and CSL, you can compare the effects of market volatilities on Protalix Biotherapeutics and CSL 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 Protalix Biotherapeutics with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and CSL.
Diversification Opportunities for Protalix Biotherapeutics and CSL
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Protalix and CSL is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Protalix Biotherapeutics 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 Protalix Biotherapeutics are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Protalix Biotherapeutics i.e., Protalix Biotherapeutics and CSL go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and CSL
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 5.1 times more return on investment than CSL. However, Protalix Biotherapeutics is 5.1 times more volatile than CSL. It trades about 0.35 of its potential returns per unit of risk. CSL is currently generating about -0.27 per unit of risk. If you would invest 113.00 in Protalix Biotherapeutics on August 27, 2024 and sell it today you would earn a total of 56.00 from holding Protalix Biotherapeutics or generate 49.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. CSL
Performance |
| Timeline |
| Protalix Biotherapeutics |
| CSL |
Protalix Biotherapeutics and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and CSL
The main advantage of trading using opposite Protalix Biotherapeutics and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |