Correlation Between Sellas Life and Abcellera Biologics
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Abcellera Biologics 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 Sellas Life and Abcellera Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Abcellera Biologics, you can compare the effects of market volatilities on Sellas Life and Abcellera Biologics 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 Sellas Life with a short position of Abcellera Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Abcellera Biologics.
Diversification Opportunities for Sellas Life and Abcellera Biologics
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sellas and Abcellera is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Sellas Life i.e., Sellas Life and Abcellera Biologics go up and down completely randomly.
Pair Corralation between Sellas Life and Abcellera Biologics
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 2.19 times more return on investment than Abcellera Biologics. However, Sellas Life is 2.19 times more volatile than Abcellera Biologics. It trades about 0.13 of its potential returns per unit of risk. Abcellera Biologics is currently generating about 0.07 per unit of risk. If you would invest 118.00 in Sellas Life Sciences on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Sellas Life Sciences or generate 37.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Abcellera Biologics
Performance |
| Timeline |
| Sellas Life Sciences |
| Abcellera Biologics |
Sellas Life and Abcellera Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Abcellera Biologics
The main advantage of trading using opposite Sellas Life and Abcellera Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Abcellera Biologics 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 Abcellera Biologics will offset losses from the drop in Abcellera Biologics' long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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