Correlation Between Zura Bio and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Zura Bio and Sellas Life 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 Zura Bio and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Sellas Life Sciences, you can compare the effects of market volatilities on Zura Bio and Sellas Life 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 Zura Bio with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Sellas Life.
Diversification Opportunities for Zura Bio and Sellas Life
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zura and Sellas is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and Zura Bio 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 Zura Bio Limited are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Zura Bio i.e., Zura Bio and Sellas Life go up and down completely randomly.
Pair Corralation between Zura Bio and Sellas Life
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Sellas Life. In addition to that, Zura Bio is 1.07 times more volatile than Sellas Life Sciences. It trades about -0.01 of its total potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.01 per unit of volatility. If you would invest 171.00 in Sellas Life Sciences on August 27, 2024 and sell it today you would lose (54.00) from holding Sellas Life Sciences or give up 31.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Sellas Life Sciences
Performance |
| Timeline |
| Zura Bio Limited |
| Sellas Life Sciences |
Zura Bio and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Sellas Life
The main advantage of trading using opposite Zura Bio and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Zura Bio vs. Scandinavian Tobacco Group | Zura Bio vs. United Airlines Holdings | Zura Bio vs. Saia Inc | Zura Bio vs. Mesa Air Group |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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