Correlation Between VersaBank and Helix BioPharma
Can any of the company-specific risk be diversified away by investing in both VersaBank and Helix BioPharma 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 VersaBank and Helix BioPharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VersaBank and Helix BioPharma Corp, you can compare the effects of market volatilities on VersaBank and Helix BioPharma 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 VersaBank with a short position of Helix BioPharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of VersaBank and Helix BioPharma.
Diversification Opportunities for VersaBank and Helix BioPharma
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VersaBank and Helix is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding VersaBank and Helix BioPharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix BioPharma Corp and VersaBank 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 VersaBank are associated (or correlated) with Helix BioPharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix BioPharma Corp has no effect on the direction of VersaBank i.e., VersaBank and Helix BioPharma go up and down completely randomly.
Pair Corralation between VersaBank and Helix BioPharma
Assuming the 90 days trading horizon VersaBank is expected to under-perform the Helix BioPharma. But the stock apears to be less risky and, when comparing its historical volatility, VersaBank is 1.63 times less risky than Helix BioPharma. The stock trades about -0.18 of its potential returns per unit of risk. The Helix BioPharma Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Helix BioPharma Corp on October 9, 2024 and sell it today you would earn a total of 6.00 from holding Helix BioPharma Corp or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VersaBank vs. Helix BioPharma Corp
Performance |
| Timeline |
| VersaBank |
| Helix BioPharma Corp |
VersaBank and Helix BioPharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VersaBank and Helix BioPharma
The main advantage of trading using opposite VersaBank and Helix BioPharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VersaBank position performs unexpectedly, Helix BioPharma 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 Helix BioPharma will offset losses from the drop in Helix BioPharma's long position.| VersaBank vs. Sylogist | VersaBank vs. Sangoma Technologies Corp | VersaBank vs. Firan Technology Group | VersaBank vs. Hammond Power Solutions |
| Helix BioPharma vs. Microbix Biosystems | Helix BioPharma vs. Oncolytics Biotech | Helix BioPharma vs. Spectral Med | Helix BioPharma vs. Theratechnologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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