Correlation Between Scisparc and Greenbrook TMS
Can any of the company-specific risk be diversified away by investing in both Scisparc and Greenbrook TMS 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 Scisparc and Greenbrook TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scisparc and Greenbrook TMS, you can compare the effects of market volatilities on Scisparc and Greenbrook TMS 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 Scisparc with a short position of Greenbrook TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scisparc and Greenbrook TMS.
Diversification Opportunities for Scisparc and Greenbrook TMS
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scisparc and Greenbrook is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Scisparc and Greenbrook TMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenbrook TMS and Scisparc 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 Scisparc are associated (or correlated) with Greenbrook TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenbrook TMS has no effect on the direction of Scisparc i.e., Scisparc and Greenbrook TMS go up and down completely randomly.
Pair Corralation between Scisparc and Greenbrook TMS
Given the investment horizon of 90 days Scisparc is expected to generate 1.64 times more return on investment than Greenbrook TMS. However, Scisparc is 1.64 times more volatile than Greenbrook TMS. It trades about -0.05 of its potential returns per unit of risk. Greenbrook TMS is currently generating about -0.3 per unit of risk. If you would invest 1,524 in Scisparc on August 31, 2024 and sell it today you would lose (1,503) from holding Scisparc or give up 98.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Scisparc vs. Greenbrook TMS
Performance |
| Timeline |
| Scisparc |
| Greenbrook TMS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Scisparc and Greenbrook TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scisparc and Greenbrook TMS
The main advantage of trading using opposite Scisparc and Greenbrook TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scisparc position performs unexpectedly, Greenbrook TMS 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 Greenbrook TMS will offset losses from the drop in Greenbrook TMS's long position.| Scisparc vs. Cue Biopharma | Scisparc vs. Eliem Therapeutics | Scisparc vs. Inhibrx | Scisparc vs. Molecular Partners AG |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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