Correlation Between SAB Biotherapeutics and Trevena
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics and Trevena 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 SAB Biotherapeutics and Trevena into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Trevena, you can compare the effects of market volatilities on SAB Biotherapeutics and Trevena 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 SAB Biotherapeutics with a short position of Trevena. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Trevena.
Diversification Opportunities for SAB Biotherapeutics and Trevena
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAB and Trevena is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Trevena in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trevena and SAB 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 SAB Biotherapeutics are associated (or correlated) with Trevena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trevena has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Trevena go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Trevena
If you would invest 5.26 in SAB Biotherapeutics on August 31, 2024 and sell it today you would earn a total of 1.57 from holding SAB Biotherapeutics or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Trevena
Performance |
| Timeline |
| SAB Biotherapeutics |
| Trevena |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SAB Biotherapeutics and Trevena Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Trevena
The main advantage of trading using opposite SAB Biotherapeutics and Trevena positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics position performs unexpectedly, Trevena 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 Trevena will offset losses from the drop in Trevena's long position.| SAB Biotherapeutics vs. SAB Biotherapeutics | SAB Biotherapeutics vs. Jasper Therapeutics | SAB Biotherapeutics vs. NRx Pharmaceuticals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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