Correlation Between Sellas Life and GENERAL
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By analyzing existing cross correlation between Sellas Life Sciences and GENERAL MTRS FINL, you can compare the effects of market volatilities on Sellas Life and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and GENERAL.
Diversification Opportunities for Sellas Life and GENERAL
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sellas and GENERAL is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of Sellas Life i.e., Sellas Life and GENERAL go up and down completely randomly.
Pair Corralation between Sellas Life and GENERAL
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 53.38 times more return on investment than GENERAL. However, Sellas Life is 53.38 times more volatile than GENERAL MTRS FINL. It trades about 0.22 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about -0.18 per unit of risk. If you would invest 108.00 in Sellas Life Sciences on November 4, 2024 and sell it today you would earn a total of 54.00 from holding Sellas Life Sciences or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Sellas Life Sciences vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Sellas Life Sciences |
| GENERAL MTRS FINL |
Sellas Life and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and GENERAL
The main advantage of trading using opposite Sellas Life and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
| GENERAL vs. flyExclusive, | GENERAL vs. Lion One Metals | GENERAL vs. Alternative Investment | GENERAL vs. Verra Mobility 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 Stocks Directory module to find actively traded stocks across global markets.
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