Correlation Between Theriva Biologics and Briacell Therapeutics

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

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

Diversification Opportunities for Theriva Biologics and Briacell Therapeutics

-0.38

Correlation Coefficient

Theriva Biologics  Briacell Therapeutics

Very good diversification

The 3 months correlation between Theriva and Briacell is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Theriva Biologics and Briacell Therapeutics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Briacell Therapeutics and Theriva Biologics 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 Theriva Biologics are associated (or correlated) with Briacell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Briacell Therapeutics has no effect on the direction of Theriva Biologics i.e., Theriva Biologics and Briacell Therapeutics go up and down completely randomly.

Pair Corralation between Theriva Biologics and Briacell Therapeutics

Given the investment horizon of 90 days Theriva Biologics is expected to under-perform the Briacell Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Theriva Biologics is 3.65 times less risky than Briacell Therapeutics. The stock trades about -0.07 of its potential returns per unit of risk. The Briacell Therapeutics Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  57.00  in Briacell Therapeutics Corp on September 20, 2024 and sell it today you would earn a total of  2.00  from holding Briacell Therapeutics Corp or generate 3.51% return on investment over 90 days.

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

Theriva Biologics  vs.  Briacell Therapeutics Corp

Theriva Biologics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Theriva Biologics 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 January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Briacell Therapeutics

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Briacell Therapeutics Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Briacell Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Theriva Biologics and Briacell Therapeutics

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

The idea behind Theriva Biologics and Briacell Therapeutics Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.