Correlation Between Sellas Life and CATERPILLAR
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By analyzing existing cross correlation between Sellas Life Sciences and CATERPILLAR FINANCIAL SERVICES, you can compare the effects of market volatilities on Sellas Life and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and CATERPILLAR.
Diversification Opportunities for Sellas Life and CATERPILLAR
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sellas and CATERPILLAR is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and CATERPILLAR FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR FINANCIAL 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR FINANCIAL has no effect on the direction of Sellas Life i.e., Sellas Life and CATERPILLAR go up and down completely randomly.
Pair Corralation between Sellas Life and CATERPILLAR
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 19.28 times more return on investment than CATERPILLAR. However, Sellas Life is 19.28 times more volatile than CATERPILLAR FINANCIAL SERVICES. It trades about 0.01 of its potential returns per unit of risk. CATERPILLAR FINANCIAL SERVICES is currently generating about 0.01 per unit of risk. If you would invest 148.00 in Sellas Life Sciences on September 12, 2024 and sell it today you would lose (44.00) from holding Sellas Life Sciences or give up 29.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.86% |
| Values | Daily Returns |
Sellas Life Sciences vs. CATERPILLAR FINANCIAL SERVICES
Performance |
| Timeline |
| Sellas Life Sciences |
| CATERPILLAR FINANCIAL |
Sellas Life and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and CATERPILLAR
The main advantage of trading using opposite Sellas Life and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's 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 |
| CATERPILLAR vs. Iridium Communications | CATERPILLAR vs. Inhibrx | CATERPILLAR vs. Sellas Life Sciences | CATERPILLAR vs. Apogee Therapeutics, Common |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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