Correlation Between Curative Biosciences and IAnthus Capital

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

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

Diversification Opportunities for Curative Biosciences and IAnthus Capital

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Correlation Coefficient

Curative Biosciences  IAnthus Capital

Pay attention - limited upside

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

Pair Corralation between Curative Biosciences and IAnthus Capital

Given the investment horizon of 90 days Curative Biosciences is expected to generate 3.64 times less return on investment than IAnthus Capital. But when comparing it to its historical volatility, Curative Biosciences is 1.1 times less risky than IAnthus Capital. It trades about 0.01 of its potential returns per unit of risk. iAnthus Capital Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2.00  in iAnthus Capital Holdings on October 12, 2024 and sell it today you would lose (1.40) from holding iAnthus Capital Holdings or give up 70.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Curative Biosciences  vs.  iAnthus Capital Holdings

Curative Biosciences

Risk-Adjusted Performance

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Very Weak

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

iAnthus Capital Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iAnthus Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, IAnthus Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Curative Biosciences and IAnthus Capital

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

The idea behind Curative Biosciences and iAnthus Capital 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.