Correlation Between Gilead Sciences and Serina Therapeutics | GILD vs. SER

Correlation Between Gilead Sciences and Serina Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Gilead Sciences and Serina Therapeutics 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 Gilead Sciences and Serina Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilead Sciences and Serina Therapeutics, you can compare the effects of market volatilities on Gilead Sciences and Serina Therapeutics 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 Gilead Sciences with a short position of Serina Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilead Sciences and Serina Therapeutics.

Diversification Opportunities for Gilead Sciences and Serina Therapeutics

GileadSerinaDiversified AwayGileadSerinaDiversified Away100%
-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Gilead and Serina is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gilead Sciences and Serina Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serina Therapeutics and Gilead Sciences 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 Gilead Sciences are associated (or correlated) with Serina Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serina Therapeutics has no effect on the direction of Gilead Sciences i.e., Gilead Sciences and Serina Therapeutics go up and down completely randomly.

Pair Corralation between Gilead Sciences and Serina Therapeutics

Given the investment horizon of 90 days Gilead Sciences is expected to generate 0.2 times more return on investment than Serina Therapeutics. However, Gilead Sciences is 4.93 times less risky than Serina Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Serina Therapeutics is currently generating about 0.0 per unit of risk. If you would invest  7,941  in Gilead Sciences on September 20, 2024 and sell it today you would earn a total of  1,143  from holding Gilead Sciences or generate 14.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Gilead Sciences  vs.  Serina Therapeutics

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -30-20-100102030
JavaScript chart by amCharts 3.21.15GILD SER
       Timeline  
Gilead Sciences 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Gilead Sciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Gilead Sciences may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec859095
Serina Therapeutics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec44.555.566.577.58

Gilead Sciences and Serina Therapeutics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.44-3.33-2.21-1.1-0.01861.142.323.54.685.86 0.050.100.15
JavaScript chart by amCharts 3.21.15GILD SER
       Returns  

Pair Trading with Gilead Sciences and Serina Therapeutics

The main advantage of trading using opposite Gilead Sciences and Serina Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilead Sciences position performs unexpectedly, Serina Therapeutics 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 Serina Therapeutics will offset losses from the drop in Serina Therapeutics' long position.
The idea behind Gilead Sciences and Serina 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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