Correlation Between BioCube and CLST Holdings

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

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

Diversification Opportunities for BioCube and CLST Holdings

0.0

Correlation Coefficient

BioCube  CLST Holdings

Pay attention - limited upside

The 3 months correlation between BioCube and CLST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioCube and CLST Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLST Holdings and BioCube 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 BioCube are associated (or correlated) with CLST Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLST Holdings has no effect on the direction of BioCube i.e., BioCube and CLST Holdings go up and down completely randomly.

Pair Corralation between BioCube and CLST Holdings

If you would invest  2.10  in CLST Holdings on December 19, 2024 and sell it today you would earn a total of  2.70  from holding CLST Holdings or generate 128.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

BioCube  vs.  CLST Holdings

BioCube

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioCube has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, BioCube is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

CLST Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CLST Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, CLST Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioCube and CLST Holdings

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

The idea behind BioCube and CLST 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.