Correlation Between Suny Cellular and Nextage Therapeutics
Can any of the company-specific risk be diversified away by investing in both Suny Cellular and Nextage 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 Suny Cellular and Nextage Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suny Cellular Communication and Nextage Therapeutics, you can compare the effects of market volatilities on Suny Cellular and Nextage 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 Suny Cellular with a short position of Nextage Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suny Cellular and Nextage Therapeutics.
Diversification Opportunities for Suny Cellular and Nextage Therapeutics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suny and Nextage is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Suny Cellular Communication and Nextage Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextage Therapeutics and Suny Cellular 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 Suny Cellular Communication are associated (or correlated) with Nextage Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextage Therapeutics has no effect on the direction of Suny Cellular i.e., Suny Cellular and Nextage Therapeutics go up and down completely randomly.
Pair Corralation between Suny Cellular and Nextage Therapeutics
Assuming the 90 days trading horizon Suny Cellular Communication is expected to generate 0.46 times more return on investment than Nextage Therapeutics. However, Suny Cellular Communication is 2.18 times less risky than Nextage Therapeutics. It trades about 0.3 of its potential returns per unit of risk. Nextage Therapeutics is currently generating about 0.1 per unit of risk. If you would invest 10,459 in Suny Cellular Communication on September 5, 2024 and sell it today you would earn a total of 1,351 from holding Suny Cellular Communication or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Suny Cellular Communication vs. Nextage Therapeutics
Performance |
| Timeline |
| Suny Cellular Commun |
| Nextage Therapeutics |
Suny Cellular and Nextage Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suny Cellular and Nextage Therapeutics
The main advantage of trading using opposite Suny Cellular and Nextage Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suny Cellular position performs unexpectedly, Nextage 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 Nextage Therapeutics will offset losses from the drop in Nextage Therapeutics' long position.| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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