Correlation Between Eupraxia Pharmaceuticals and SAB Biotherapeutics

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

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

Diversification Opportunities for Eupraxia Pharmaceuticals and SAB Biotherapeutics

0.0

Correlation Coefficient

Eupraxia Pharmaceuticals  SAB Biotherapeutics

Pay attention - limited upside

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

Pair Corralation between Eupraxia Pharmaceuticals and SAB Biotherapeutics

If you would invest (100.00) in Eupraxia Pharmaceuticals on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Eupraxia Pharmaceuticals 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

Eupraxia Pharmaceuticals  vs.  SAB Biotherapeutics

Eupraxia Pharmaceuticals

Risk-Adjusted Performance

Very Weak

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

SAB Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days SAB Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Eupraxia Pharmaceuticals and SAB Biotherapeutics

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

The idea behind Eupraxia Pharmaceuticals and SAB Biotherapeutics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.