Correlation Between Fortress Biotech and Orgenesis

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

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

Diversification Opportunities for Fortress Biotech and Orgenesis

-0.59

Correlation Coefficient

Fortress Biotech  Orgenesis

Excellent diversification

The 3 months correlation between Fortress and Orgenesis is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref and Orgenesis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orgenesis and Fortress Biotech 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 Fortress Biotech Pref are associated (or correlated) with Orgenesis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orgenesis has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Orgenesis go up and down completely randomly.

Pair Corralation between Fortress Biotech and Orgenesis

If you would invest  658.00  in Fortress Biotech Pref on October 1, 2024 and sell it today you would earn a total of  27.00  from holding Fortress Biotech Pref or generate 4.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Fortress Biotech Pref  vs.  Orgenesis

Fortress Biotech Pref

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fortress Biotech Pref are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Fortress Biotech reported solid returns over the last few months and may actually be approaching a breakup point.

Orgenesis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orgenesis 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 comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fortress Biotech and Orgenesis

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

The idea behind Fortress Biotech Pref and Orgenesis 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.