Correlation Between Antisense Therapeutics and City View

Can any of the company-specific risk be diversified away by investing in both Antisense Therapeutics and City View 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 Antisense Therapeutics and City View into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Antisense Therapeutics Limited and City View Green, you can compare the effects of market volatilities on Antisense Therapeutics and City View 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 Antisense Therapeutics with a short position of City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antisense Therapeutics and City View.

Diversification Opportunities for Antisense Therapeutics and City View

-0.21

Correlation Coefficient

Antisense Therapeutics  City View

Very good diversification

The 3 months correlation between Antisense and City is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Antisense Therapeutics Limited and City View Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City View Green and Antisense Therapeutics 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 Antisense Therapeutics Limited are associated (or correlated) with City View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City View Green has no effect on the direction of Antisense Therapeutics i.e., Antisense Therapeutics and City View go up and down completely randomly.

Pair Corralation between Antisense Therapeutics and City View

Assuming the 90 days horizon Antisense Therapeutics Limited is expected to under-perform the City View. But the pink sheet apears to be less risky and, when comparing its historical volatility, Antisense Therapeutics Limited is 1.54 times less risky than City View. The pink sheet trades about -0.12 of its potential returns per unit of risk. The City View Green is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  0.51  in City View Green on September 25, 2024 and sell it today you would lose (0.25) from holding City View Green or give up 49.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Antisense Therapeutics Limited  vs.  City View Green

Antisense Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antisense Therapeutics Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward-looking indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

City View Green

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in City View Green are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, City View reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antisense Therapeutics and City View

The main advantage of trading using opposite Antisense Therapeutics and City View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antisense Therapeutics position performs unexpectedly, City View 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 City View will offset losses from the drop in City View's long position.

The idea behind Antisense Therapeutics Limited and City View Green 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.