Correlation Between Lisata Therapeutics and Forte Biosciences
Can any of the company-specific risk be diversified away by investing in both Lisata Therapeutics and Forte 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 Lisata Therapeutics and Forte Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lisata Therapeutics and Forte Biosciences, you can compare the effects of market volatilities on Lisata Therapeutics and Forte 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 Lisata Therapeutics with a short position of Forte Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lisata Therapeutics and Forte Biosciences.
Diversification Opportunities for Lisata Therapeutics and Forte Biosciences
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lisata and Forte is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lisata Therapeutics and Forte Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forte Biosciences and Lisata Therapeutics 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 Lisata Therapeutics are associated (or correlated) with Forte Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forte Biosciences has no effect on the direction of Lisata Therapeutics i.e., Lisata Therapeutics and Forte Biosciences go up and down completely randomly.
Pair Corralation between Lisata Therapeutics and Forte Biosciences
Given the investment horizon of 90 days Lisata Therapeutics is expected to generate 0.91 times more return on investment than Forte Biosciences. However, Lisata Therapeutics is 1.1 times less risky than Forte Biosciences. It trades about 0.27 of its potential returns per unit of risk. Forte Biosciences is currently generating about -0.1 per unit of risk. If you would invest 282.00 in Lisata Therapeutics on October 11, 2024 and sell it today you would earn a total of 98.00 from holding Lisata Therapeutics or generate 34.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Lisata Therapeutics vs. Forte Biosciences
Performance |
Timeline |
Lisata Therapeutics |
Forte Biosciences |
Lisata Therapeutics and Forte Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lisata Therapeutics and Forte Biosciences
The main advantage of trading using opposite Lisata Therapeutics and Forte Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lisata Therapeutics position performs unexpectedly, Forte 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 Forte Biosciences will offset losses from the drop in Forte Biosciences' long position.Lisata Therapeutics vs. Lixte Biotechnology Holdings | Lisata Therapeutics vs. Imunon Inc | Lisata Therapeutics vs. Rezolute | Lisata Therapeutics vs. XOMA Corporation |
Forte Biosciences vs. Indaptus Therapeutics | Forte Biosciences vs. Rezolute | Forte Biosciences vs. Tempest Therapeutics | Forte Biosciences vs. ABVC Biopharma |
Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |