Correlation Between Sight Sciences and Cellink AB
Can any of the company-specific risk be diversified away by investing in both Sight Sciences and Cellink AB 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 Sight Sciences and Cellink AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sight Sciences and Cellink AB, you can compare the effects of market volatilities on Sight Sciences and Cellink AB 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 Sight Sciences with a short position of Cellink AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sight Sciences and Cellink AB.
Diversification Opportunities for Sight Sciences and Cellink AB
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sight and Cellink is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sight Sciences and Cellink AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellink AB and Sight Sciences 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 Sight Sciences are associated (or correlated) with Cellink AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellink AB has no effect on the direction of Sight Sciences i.e., Sight Sciences and Cellink AB go up and down completely randomly.
Pair Corralation between Sight Sciences and Cellink AB
Given the investment horizon of 90 days Sight Sciences is expected to under-perform the Cellink AB. In addition to that, Sight Sciences is 1.77 times more volatile than Cellink AB. It trades about -0.3 of its total potential returns per unit of risk. Cellink AB is currently generating about 0.3 per unit of volatility. If you would invest 277.00 in Cellink AB on November 2, 2024 and sell it today you would earn a total of 31.00 from holding Cellink AB or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Sight Sciences vs. Cellink AB
Performance |
| Timeline |
| Sight Sciences |
| Cellink AB |
Sight Sciences and Cellink AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sight Sciences and Cellink AB
The main advantage of trading using opposite Sight Sciences and Cellink AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sight Sciences position performs unexpectedly, Cellink AB 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 Cellink AB will offset losses from the drop in Cellink AB's long position.| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
| Cellink AB vs. Aurora Spine | Cellink AB vs. Ainos Inc | Cellink AB vs. Armm Inc | Cellink AB vs. Bone Biologics Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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