Life Science Correlations

LABS Stock

38.60 0.10 0.26%

The current 90-days correlation between Life Science REIT and Derwent London PLC is 0.15 (i.e., Average diversification). The correlation of Life Science is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Life Science Correlation With Market

Significant diversification

The correlation between Life Science REIT and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Life Science REIT and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Life Science could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Life Science when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Life Science - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Life Science REIT to buy it.

Moving against Life Stock

0.69	0IC8	Dollar Tree	Pair Corr
0.39	OSB	OneSavings Bank PLC	Pair Corr
0.34	SUPR	Supermarket Income REIT	Pair Corr
0.31	DLN	Derwent London PLC	Pair Corr
0.62	BLU	Blue Star Capital	Pair Corr
0.5	PREM	Premier African Minerals	Pair Corr

Related Correlations Analysis

	DLN	HMSO	WKP	SUPR	0K2K	XLM	0HW4	0HOY	RIO	PREM
DLN		0.9	0.98	0.87	-0.77	-0.53	-0.79	-0.81	0.58	0.03	DLN
HMSO	0.9		0.92	0.93	-0.78	-0.6	-0.84	-0.7	0.62	0.17	HMSO
WKP	0.98	0.92		0.89	-0.74	-0.55	-0.78	-0.77	0.63	0.0	WKP
SUPR	0.87	0.93	0.89		-0.64	-0.53	-0.75	-0.64	0.67	0.24	SUPR
0K2K	-0.77	-0.78	-0.74	-0.64		0.54	0.8	0.81	-0.48	0.01	0K2K
XLM	-0.53	-0.6	-0.55	-0.53	0.54		0.7	0.42	-0.22	-0.2	XLM
0HW4	-0.79	-0.84	-0.78	-0.75	0.8	0.7		0.75	-0.49	-0.05	0HW4
0HOY	-0.81	-0.7	-0.77	-0.64	0.81	0.42	0.75		-0.56	0.1	0HOY
RIO	0.58	0.62	0.63	0.67	-0.48	-0.22	-0.49	-0.56		-0.07	RIO
PREM	0.03	0.17	0.0	0.24	0.01	-0.2	-0.05	0.1	-0.07		PREM
	DLN	HMSO	WKP	SUPR	0K2K	XLM	0HW4	0HOY	RIO	PREM

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

WKP	+ 0.98	DLN
SUPR	+ 0.93	HMSO
WKP	+ 0.92	HMSO
HMSO	+ 0.9	DLN
SUPR	+ 0.89	WKP
SUPR	+ 0.87	DLN

High negative correlations

0HW4	- 0.84	HMSO
0HOY	- 0.81	DLN
0HW4	- 0.79	DLN
0HW4	- 0.78	WKP
0K2K	- 0.78	HMSO
0HOY	- 0.77	WKP

Risk-Adjusted Indicators

There is a big difference between Life Stock performing well and Life Science Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Life Science's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DLN	0.94	(0.35)	0.00	(0.70)	0.00	0.00	1.25	(1.84)	7.03
HMSO	1.11	(0.17)	0.00	2.16	0.00	0.00	2.01	(2.62)	8.58
WKP	1.27	(0.40)	0.00	(1.24)	0.00	0.00	2.01	(3.03)	8.98
SUPR	0.73	(0.13)	0.00	(0.81)	0.00	0.00	1.71	(1.45)	5.97
0K2K	1.02	0.09	0.07	0.18	0.94	(1.19)	2.56	(1.66)	7.75
XLM	1.67	0.00	0.00	0.03	3.49	(3.08)	2.63	(2.50)	50.54
0HW4	1.60	0.14	0.04	(0.32)	2.24	(1.53)	3.38	(3.43)	19.79
0HOY	0.75	0.09	0.07	0.52	0.78	(0.90)	1.42	(1.63)	6.85
RIO	1.09	(0.05)	0.00	(0.14)	0.00	0.00	3.13	(2.00)	9.45
PREM	6.05	0.45	0.05	0.38	7.96	(8.80)	15.38	(9.46)	70.70

Be your own money manager

Our tools can tell you how much better you can do entering a position in Life Science without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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