Correlation Between Sellas Life and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Quanergy Systems 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 Quanergy Systems 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 Quanergy Systems, you can compare the effects of market volatilities on Sellas Life and Quanergy Systems 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 Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Quanergy Systems.
Diversification Opportunities for Sellas Life and Quanergy Systems
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sellas and Quanergy is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems 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 Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Sellas Life i.e., Sellas Life and Quanergy Systems go up and down completely randomly.
Pair Corralation between Sellas Life and Quanergy Systems
Considering the 90-day investment horizon Sellas Life Sciences is expected to under-perform the Quanergy Systems. In addition to that, Sellas Life is 2.9 times more volatile than Quanergy Systems. It trades about -0.01 of its total potential returns per unit of risk. Quanergy Systems is currently generating about 0.01 per unit of volatility. If you would invest 4.00 in Quanergy Systems on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Quanergy Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.88% |
| Values | Daily Returns |
Sellas Life Sciences vs. Quanergy Systems
Performance |
| Timeline |
| Sellas Life Sciences |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sellas Life and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Quanergy Systems
The main advantage of trading using opposite Sellas Life and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' 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 |
| Quanergy Systems vs. Sellas Life Sciences | Quanergy Systems vs. Wingstop | Quanergy Systems vs. Biglari Holdings | Quanergy Systems vs. Spyre Therapeutics |
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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