Correlation Between Statera Biopharma and Biotron
Can any of the company-specific risk be diversified away by investing in both Statera Biopharma and Biotron 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 Statera Biopharma and Biotron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Statera Biopharma and Biotron Limited, you can compare the effects of market volatilities on Statera Biopharma and Biotron 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 Statera Biopharma with a short position of Biotron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Statera Biopharma and Biotron.
Diversification Opportunities for Statera Biopharma and Biotron
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Statera and Biotron is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Statera Biopharma and Biotron Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotron Limited and Statera Biopharma 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 Statera Biopharma are associated (or correlated) with Biotron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotron Limited has no effect on the direction of Statera Biopharma i.e., Statera Biopharma and Biotron go up and down completely randomly.
Pair Corralation between Statera Biopharma and Biotron
Given the investment horizon of 90 days Statera Biopharma is expected to under-perform the Biotron. But the pink sheet apears to be less risky and, when comparing its historical volatility, Statera Biopharma is 2.9 times less risky than Biotron. The pink sheet trades about -0.16 of its potential returns per unit of risk. The Biotron Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2.06 in Biotron Limited on August 28, 2024 and sell it today you would lose (0.81) from holding Biotron Limited or give up 39.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.84% |
| Values | Daily Returns |
Statera Biopharma vs. Biotron Limited
Performance |
| Timeline |
| Statera Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biotron Limited |
Statera Biopharma and Biotron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Statera Biopharma and Biotron
The main advantage of trading using opposite Statera Biopharma and Biotron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Statera Biopharma position performs unexpectedly, Biotron 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 Biotron will offset losses from the drop in Biotron's long position.| Statera Biopharma vs. NeuroSense Therapeutics Ltd | Statera Biopharma vs. Eliem Therapeutics | Statera Biopharma vs. Acrivon Therapeutics, Common | Statera Biopharma vs. Alector |
| Biotron vs. biOasis Technologies | Biotron vs. Covalon Technologies | Biotron vs. Mosaic Immunoengineering | Biotron vs. Cellectis SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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