Correlation Between Abcellera Biologics and Airship AI

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

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

Diversification Opportunities for Abcellera Biologics and Airship AI

0.6

Correlation Coefficient

Abcellera Biologics  Airship AI

Poor diversification

The 3 months correlation between Abcellera and Airship is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and Airship AI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airship AI Holdings and Abcellera 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 Abcellera Biologics are associated (or correlated) with Airship AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airship AI Holdings has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Airship AI go up and down completely randomly.

Pair Corralation between Abcellera Biologics and Airship AI

Given the investment horizon of 90 days Abcellera Biologics is expected to generate 0.58 times more return on investment than Airship AI. However, Abcellera Biologics is 1.71 times less risky than Airship AI. It trades about -0.04 of its potential returns per unit of risk. Airship AI Holdings is currently generating about -0.03 per unit of risk. If you would invest  292.00  in Abcellera Biologics on December 21, 2024 and sell it today you would lose (48.00) from holding Abcellera Biologics or give up 16.44% of portfolio value over 90 days.

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

Abcellera Biologics  vs.  Airship AI Holdings

Abcellera Biologics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abcellera Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Airship AI Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Airship AI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Abcellera Biologics and Airship AI

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

The idea behind Abcellera Biologics and Airship AI Holdings 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.