Correlation Between Elicio Therapeutics and Standard Biotools

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

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

Diversification Opportunities for Elicio Therapeutics and Standard Biotools

-0.71

Correlation Coefficient

Elicio Therapeutics  Standard Biotools

Pay attention - limited upside

The 3 months correlation between Elicio and Standard is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and Standard Biotools in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Biotools and Elicio Therapeutics 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 Elicio Therapeutics are associated (or correlated) with Standard Biotools. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Biotools has no effect on the direction of Elicio Therapeutics i.e., Elicio Therapeutics and Standard Biotools go up and down completely randomly.

Pair Corralation between Elicio Therapeutics and Standard Biotools

Given the investment horizon of 90 days Elicio Therapeutics is expected to generate 0.8 times more return on investment than Standard Biotools. However, Elicio Therapeutics is 1.25 times less risky than Standard Biotools. It trades about 0.17 of its potential returns per unit of risk. Standard Biotools is currently generating about -0.1 per unit of risk. If you would invest  500.00  in Elicio Therapeutics on December 29, 2024 and sell it today you would earn a total of  267.00  from holding Elicio Therapeutics or generate 53.4% return on investment over 90 days.

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

Elicio Therapeutics  vs.  Standard Biotools

Elicio Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Elicio Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Elicio Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Standard Biotools

Risk-Adjusted Performance

Very Weak

Over the last 90 days Standard Biotools has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Elicio Therapeutics and Standard Biotools

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

The idea behind Elicio Therapeutics and Standard Biotools 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 Transaction History module to view history of all your transactions and understand their impact on performance.