Correlation Between Moleculin Biotech and Catalyst Biosciences

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

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

Diversification Opportunities for Moleculin Biotech and Catalyst Biosciences

0.0

Correlation Coefficient

Moleculin Biotech  Catalyst Biosciences

Pay attention - limited upside

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

Pair Corralation between Moleculin Biotech and Catalyst Biosciences

If you would invest  179.00  in Moleculin Biotech on December 30, 2024 and sell it today you would lose (75.00) from holding Moleculin Biotech or give up 41.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Moleculin Biotech  vs.  Catalyst Biosciences

Moleculin Biotech

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Moleculin Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Moleculin Biotech showed solid returns over the last few months and may actually be approaching a breakup point.

Catalyst Biosciences

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Moleculin Biotech and Catalyst Biosciences

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

The idea behind Moleculin Biotech and Catalyst 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.