Correlation Between Atreca and Black Diamond

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

By analyzing existing cross correlation between Atreca Inc and Black Diamond Therapeutics, you can compare the effects of market volatilities on Atreca and Black Diamond 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 Atreca with a short position of Black Diamond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreca and Black Diamond.

Diversification Opportunities for Atreca and Black Diamond

-0.23

Correlation Coefficient

Atreca  Black Diamond

Very good diversification

The 3 months correlation between Atreca and Black is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Atreca Inc and Black Diamond Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Diamond Therap and Atreca 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 Atreca Inc are associated (or correlated) with Black Diamond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Diamond Therap has no effect on the direction of Atreca i.e., Atreca and Black Diamond go up and down completely randomly.

Pair Corralation between Atreca and Black Diamond

If you would invest  104.00  in Atreca Inc on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Atreca Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Atreca Inc  vs.  Black Diamond Therapeutics

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Atreca is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Black Diamond Therap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Black Diamond Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly 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.

Pair Trading with Atreca and Black Diamond

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

The idea behind Atreca Inc and Black Diamond Therapeutics 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.