Correlation Between FIXX Old and Caribou Biosciences

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

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

Diversification Opportunities for FIXX Old and Caribou Biosciences

0.0

Correlation Coefficient

FIXX Old  Caribou Biosciences

Pay attention - limited upside

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

Pair Corralation between FIXX Old and Caribou Biosciences

If you would invest (100.00) in FIXX Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding FIXX Old 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

FIXX Old  vs.  Caribou Biosciences

FIXX Old

Risk-Adjusted Performance

Very Weak

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

Caribou Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caribou 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 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 FIXX Old and Caribou Biosciences

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

The idea behind FIXX Old and Caribou Biosciences 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.