Correlation Between MabCure and Clear Blue

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

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

Diversification Opportunities for MabCure and Clear Blue

0.0

Correlation Coefficient

MabCure  Clear Blue

Pay attention - limited upside

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

Pair Corralation between MabCure and Clear Blue

If you would invest  0.01  in MabCure on October 12, 2024 and sell it today you would earn a total of  0.00  from holding MabCure 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

MabCure  vs.  Clear Blue Technologies

MabCure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MabCure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, MabCure is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Clear Blue Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MabCure and Clear Blue

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

The idea behind MabCure and Clear Blue Technologies 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.