Correlation Between Helix BioPharma and Spectral Med

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

By analyzing existing cross correlation between Helix BioPharma Corp and Spectral Med, you can compare the effects of market volatilities on Helix BioPharma and Spectral Med 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 Helix BioPharma with a short position of Spectral Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix BioPharma and Spectral Med.

Diversification Opportunities for Helix BioPharma and Spectral Med

0.23

Correlation Coefficient

Helix BioPharma  Spectral Med

Modest diversification

The 3 months correlation between Helix and Spectral is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Helix BioPharma Corp and Spectral Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral Med and Helix BioPharma 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 Helix BioPharma Corp are associated (or correlated) with Spectral Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral Med has no effect on the direction of Helix BioPharma i.e., Helix BioPharma and Spectral Med go up and down completely randomly.

Pair Corralation between Helix BioPharma and Spectral Med

Assuming the 90 days trading horizon Helix BioPharma is expected to generate 1.53 times less return on investment than Spectral Med. In addition to that, Helix BioPharma is 1.44 times more volatile than Spectral Med. It trades about 0.06 of its total potential returns per unit of risk. Spectral Med is currently generating about 0.13 per unit of volatility. If you would invest  53.00  in Spectral Med on October 9, 2024 and sell it today you would earn a total of  4.00  from holding Spectral Med or generate 7.55% return on investment over 90 days.

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

Helix BioPharma Corp  vs.  Spectral Med

Helix BioPharma Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Spectral Med

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Helix BioPharma and Spectral Med

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

The idea behind Helix BioPharma Corp and Spectral Med 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.