Correlation Between Sellas Life and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Globalfoundries 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 Sellas Life and Globalfoundries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Globalfoundries, you can compare the effects of market volatilities on Sellas Life and Globalfoundries 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 Sellas Life with a short position of Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Globalfoundries.
Diversification Opportunities for Sellas Life and Globalfoundries
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sellas and Globalfoundries is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Sellas Life i.e., Sellas Life and Globalfoundries go up and down completely randomly.
Pair Corralation between Sellas Life and Globalfoundries
Considering the 90-day investment horizon Sellas Life Sciences is expected to under-perform the Globalfoundries. In addition to that, Sellas Life is 1.15 times more volatile than Globalfoundries. It trades about -0.1 of its total potential returns per unit of risk. Globalfoundries is currently generating about 0.07 per unit of volatility. If you would invest 3,904 in Globalfoundries on September 24, 2024 and sell it today you would earn a total of 508.00 from holding Globalfoundries or generate 13.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sellas Life Sciences vs. Globalfoundries
Performance |
Timeline |
Sellas Life Sciences |
Globalfoundries |
Sellas Life and Globalfoundries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sellas Life and Globalfoundries
The main advantage of trading using opposite Sellas Life and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.Sellas Life vs. Fate Therapeutics | Sellas Life vs. Sana Biotechnology | Sellas Life vs. Caribou Biosciences | Sellas Life vs. Arcus Biosciences |
Globalfoundries vs. Diodes Incorporated | Globalfoundries vs. Daqo New Energy | Globalfoundries vs. Nano Labs | Globalfoundries vs. Impinj Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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