Correlation Between Entia Biosciences and Centor Energy

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

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

Diversification Opportunities for Entia Biosciences and Centor Energy

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Correlation Coefficient

Entia Biosciences  Centor Energy

Pay attention - limited upside

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

Pair Corralation between Entia Biosciences and Centor Energy

Given the investment horizon of 90 days Entia Biosciences is expected to under-perform the Centor Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Entia Biosciences is 21.0 times less risky than Centor Energy. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Centor Energy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Centor Energy on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Centor Energy or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.7%
Values	Daily Returns

Entia Biosciences  vs.  Centor Energy

Entia Biosciences

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Entia Biosciences 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Centor Energy

Risk-Adjusted Performance

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Very Weak

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

Pair Trading with Entia Biosciences and Centor Energy

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

The idea behind Entia Biosciences and Centor Energy 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.