Correlation Between CSL and Angion Biomedica

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

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

Diversification Opportunities for CSL and Angion Biomedica

0.0

Correlation Coefficient

CSL  Angion Biomedica

Pay attention - limited upside

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

Pair Corralation between CSL and Angion Biomedica

If you would invest (100.00) in Angion Biomedica Corp on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Angion Biomedica Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CSL Limited  vs.  Angion Biomedica Corp

CSL Limited

Risk-Adjusted Performance

Very Weak

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

Angion Biomedica Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Angion Biomedica Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Angion Biomedica is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CSL and Angion Biomedica

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

The idea behind CSL Limited and Angion Biomedica 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.