Correlation Between Solanbridge and Capricor Therapeutics
Can any of the company-specific risk be diversified away by investing in both Solanbridge and Capricor Therapeutics 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 Solanbridge and Capricor Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solanbridge Group and Capricor Therapeutics, you can compare the effects of market volatilities on Solanbridge and Capricor Therapeutics 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 Solanbridge with a short position of Capricor Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solanbridge and Capricor Therapeutics.
Diversification Opportunities for Solanbridge and Capricor Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solanbridge and Capricor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solanbridge Group and Capricor Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capricor Therapeutics and Solanbridge 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 Solanbridge Group are associated (or correlated) with Capricor Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capricor Therapeutics has no effect on the direction of Solanbridge i.e., Solanbridge and Capricor Therapeutics go up and down completely randomly.
Pair Corralation between Solanbridge and Capricor Therapeutics
If you would invest 1,521 in Capricor Therapeutics on August 30, 2024 and sell it today you would earn a total of 383.00 from holding Capricor Therapeutics or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Solanbridge Group vs. Capricor Therapeutics
Performance |
| Timeline |
| Solanbridge Group |
| Capricor Therapeutics |
Solanbridge and Capricor Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solanbridge and Capricor Therapeutics
The main advantage of trading using opposite Solanbridge and Capricor Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solanbridge position performs unexpectedly, Capricor Therapeutics 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 Capricor Therapeutics will offset losses from the drop in Capricor Therapeutics' long position.| Solanbridge vs. Emergent Biosolutions | Solanbridge vs. Bausch Health Companies | Solanbridge vs. Neurocrine Biosciences | Solanbridge vs. Teva Pharma Industries |
| Capricor Therapeutics vs. Ikena Oncology | Capricor Therapeutics vs. Eliem Therapeutics | Capricor Therapeutics vs. HCW Biologics | Capricor Therapeutics vs. RenovoRx |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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