Correlation Between BiOasis Technologies and Cellectis

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

By analyzing existing cross correlation between biOasis Technologies and Cellectis SA, you can compare the effects of market volatilities on BiOasis Technologies and Cellectis 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 BiOasis Technologies with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of BiOasis Technologies and Cellectis.

Diversification Opportunities for BiOasis Technologies and Cellectis

0.0

Correlation Coefficient

BiOasis Technologies  Cellectis

Pay attention - limited upside

The 3 months correlation between BiOasis and Cellectis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding biOasis Technologies and Cellectis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis SA and BiOasis Technologies 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 biOasis Technologies are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis SA has no effect on the direction of BiOasis Technologies i.e., BiOasis Technologies and Cellectis go up and down completely randomly.

Pair Corralation between BiOasis Technologies and Cellectis

Assuming the 90 days horizon biOasis Technologies is expected to generate 2.59 times more return on investment than Cellectis. However, BiOasis Technologies is 2.59 times more volatile than Cellectis SA. It trades about 0.08 of its potential returns per unit of risk. Cellectis SA is currently generating about 0.03 per unit of risk. If you would invest  1.20  in biOasis Technologies on September 2, 2024 and sell it today you would lose (1.19) from holding biOasis Technologies or give up 99.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.73%
Values	Daily Returns

biOasis Technologies  vs.  Cellectis SA

biOasis Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days biOasis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BiOasis Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cellectis SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cellectis SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Cellectis is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BiOasis Technologies and Cellectis

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

The idea behind biOasis Technologies and Cellectis SA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.