Correlation Between Bridge Biotherapeutics and Cytogen
Can any of the company-specific risk be diversified away by investing in both Bridge Biotherapeutics and Cytogen 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 Bridge Biotherapeutics and Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridge Biotherapeutics and Cytogen, you can compare the effects of market volatilities on Bridge Biotherapeutics and Cytogen 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 Bridge Biotherapeutics with a short position of Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridge Biotherapeutics and Cytogen.
Diversification Opportunities for Bridge Biotherapeutics and Cytogen
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bridge and Cytogen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bridge Biotherapeutics and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen and Bridge Biotherapeutics 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 Bridge Biotherapeutics are associated (or correlated) with Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Bridge Biotherapeutics i.e., Bridge Biotherapeutics and Cytogen go up and down completely randomly.
Pair Corralation between Bridge Biotherapeutics and Cytogen
Assuming the 90 days trading horizon Bridge Biotherapeutics is expected to generate 1.18 times more return on investment than Cytogen. However, Bridge Biotherapeutics is 1.18 times more volatile than Cytogen. It trades about 0.12 of its potential returns per unit of risk. Cytogen is currently generating about -0.1 per unit of risk. If you would invest 336,500 in Bridge Biotherapeutics on September 26, 2024 and sell it today you would earn a total of 68,500 from holding Bridge Biotherapeutics or generate 20.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Bridge Biotherapeutics vs. Cytogen
Performance |
Timeline |
Bridge Biotherapeutics |
Cytogen |
Bridge Biotherapeutics and Cytogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bridge Biotherapeutics and Cytogen
The main advantage of trading using opposite Bridge Biotherapeutics and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridge Biotherapeutics position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.Bridge Biotherapeutics vs. KNOTUS CoLtd | Bridge Biotherapeutics vs. Cytogen | Bridge Biotherapeutics vs. Genolution | Bridge Biotherapeutics vs. WOOJUNG BIO |
Cytogen vs. KNOTUS CoLtd | Cytogen vs. Bridge Biotherapeutics | Cytogen vs. Genolution | Cytogen vs. WOOJUNG BIO |
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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