Correlation Between Sera Prognostics and Amer Bio
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics and Amer 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 Sera Prognostics and Amer Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Amer Bio Medica, you can compare the effects of market volatilities on Sera Prognostics and Amer 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 Sera Prognostics with a short position of Amer Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Amer Bio.
Diversification Opportunities for Sera Prognostics and Amer Bio
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sera and Amer is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Amer Bio Medica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Bio Medica and Sera Prognostics 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 Sera Prognostics are associated (or correlated) with Amer Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Bio Medica has no effect on the direction of Sera Prognostics i.e., Sera Prognostics and Amer Bio go up and down completely randomly.
Pair Corralation between Sera Prognostics and Amer Bio
If you would invest 1.38 in Amer Bio Medica on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Amer Bio Medica or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sera Prognostics vs. Amer Bio Medica
Performance |
| Timeline |
| Sera Prognostics |
| Amer Bio Medica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sera Prognostics and Amer Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Amer Bio
The main advantage of trading using opposite Sera Prognostics and Amer Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics position performs unexpectedly, Amer 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 Amer Bio will offset losses from the drop in Amer Bio's long position.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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