Correlation Between Angion Biomedica and Zura Bio

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Angion Biomedica and Zura Bio 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 Angion Biomedica and Zura Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angion Biomedica Corp and Zura Bio Limited, you can compare the effects of market volatilities on Angion Biomedica and Zura Bio 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 Angion Biomedica with a short position of Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angion Biomedica and Zura Bio.

Diversification Opportunities for Angion Biomedica and Zura Bio

-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between Angion and Zura is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Angion Biomedica Corp and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited and Angion Biomedica 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 Angion Biomedica Corp are associated (or correlated) with Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Angion Biomedica i.e., Angion Biomedica and Zura Bio go up and down completely randomly.

Pair Corralation between Angion Biomedica and Zura Bio

If you would invest  1,000.00  in Angion Biomedica Corp on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Angion Biomedica Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Angion Biomedica Corp  vs.  Zura Bio Limited

 Performance 
       Timeline  
Angion Biomedica Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Angion Biomedica Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Angion Biomedica is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Zura Bio Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Zura Bio Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Angion Biomedica and Zura Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Angion Biomedica and Zura Bio

The main advantage of trading using opposite Angion Biomedica and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angion Biomedica position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.
The idea behind Angion Biomedica Corp and Zura Bio Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Transaction History
View history of all your transactions and understand their impact on performance
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites