Correlation Between Nubeva Technologies and RepliCel Life

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

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

Diversification Opportunities for Nubeva Technologies and RepliCel Life

0.52

Correlation Coefficient

Nubeva Technologies  RepliCel Life

Very weak diversification

The 3 months correlation between Nubeva and RepliCel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nubeva Technologies and RepliCel Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RepliCel Life Sciences and Nubeva 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 Nubeva Technologies are associated (or correlated) with RepliCel Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RepliCel Life Sciences has no effect on the direction of Nubeva Technologies i.e., Nubeva Technologies and RepliCel Life go up and down completely randomly.

Pair Corralation between Nubeva Technologies and RepliCel Life

Assuming the 90 days trading horizon Nubeva Technologies is expected to generate 0.43 times more return on investment than RepliCel Life. However, Nubeva Technologies is 2.34 times less risky than RepliCel Life. It trades about -0.02 of its potential returns per unit of risk. RepliCel Life Sciences is currently generating about -0.04 per unit of risk. If you would invest  28.00  in Nubeva Technologies on September 20, 2024 and sell it today you would lose (8.00) from holding Nubeva Technologies or give up 28.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Nubeva Technologies  vs.  RepliCel Life Sciences

Nubeva Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nubeva Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

RepliCel Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RepliCel Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Nubeva Technologies and RepliCel Life

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

The idea behind Nubeva Technologies and RepliCel Life Sciences 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.