Correlation Between Pulmatrix and Histogen
Can any of the company-specific risk be diversified away by investing in both Pulmatrix and Histogen 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 Pulmatrix and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmatrix and Histogen, you can compare the effects of market volatilities on Pulmatrix and Histogen 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 Pulmatrix with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmatrix and Histogen.
Diversification Opportunities for Pulmatrix and Histogen
Excellent diversification
The 3 months correlation between Pulmatrix and Histogen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pulmatrix and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Pulmatrix 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 Pulmatrix are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Pulmatrix i.e., Pulmatrix and Histogen go up and down completely randomly.
Pair Corralation between Pulmatrix and Histogen
Given the investment horizon of 90 days Pulmatrix is expected to generate 0.94 times more return on investment than Histogen. However, Pulmatrix is 1.06 times less risky than Histogen. It trades about 0.37 of its potential returns per unit of risk. Histogen is currently generating about -0.3 per unit of risk. If you would invest 218.00 in Pulmatrix on August 30, 2024 and sell it today you would earn a total of 516.00 from holding Pulmatrix or generate 236.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmatrix vs. Histogen
Performance |
| Timeline |
| Pulmatrix |
| Histogen |
Pulmatrix and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmatrix and Histogen
The main advantage of trading using opposite Pulmatrix and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmatrix position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings |
| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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