Correlation Between Grey Cloak and Antibe Therapeutics

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

By analyzing existing cross correlation between Grey Cloak Tech and Antibe Therapeutics, you can compare the effects of market volatilities on Grey Cloak and Antibe Therapeutics 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 Grey Cloak with a short position of Antibe Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grey Cloak and Antibe Therapeutics.

Diversification Opportunities for Grey Cloak and Antibe Therapeutics

0.0

Correlation Coefficient

Grey Cloak  Antibe Therapeutics

Pay attention - limited upside

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

Pair Corralation between Grey Cloak and Antibe Therapeutics

If you would invest  22.00  in Antibe Therapeutics on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Antibe Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Grey Cloak Tech  vs.  Antibe Therapeutics

Grey Cloak Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grey Cloak Tech 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 fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Antibe Therapeutics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Grey Cloak and Antibe Therapeutics

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

The idea behind Grey Cloak Tech and Antibe Therapeutics 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.