Correlation Between 26442EAG5 and Sellas Life

Can any of the company-specific risk be diversified away by investing in both 26442EAG5 and Sellas Life 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 26442EAG5 and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY OHIO and Sellas Life Sciences, you can compare the effects of market volatilities on 26442EAG5 and Sellas Life 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 26442EAG5 with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442EAG5 and Sellas Life.

Diversification Opportunities for 26442EAG5 and Sellas Life

-0.35

Correlation Coefficient

26442EAG5  Sellas Life

Very good diversification

The 3 months correlation between 26442EAG5 and Sellas is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY OHIO and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and 26442EAG5 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 DUKE ENERGY OHIO are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of 26442EAG5 i.e., 26442EAG5 and Sellas Life go up and down completely randomly.

Pair Corralation between 26442EAG5 and Sellas Life

Assuming the 90 days trading horizon 26442EAG5 is expected to generate 2.4 times less return on investment than Sellas Life. But when comparing it to its historical volatility, DUKE ENERGY OHIO is 5.27 times less risky than Sellas Life. It trades about 0.21 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Sellas Life Sciences on December 11, 2024 and sell it today you would earn a total of  22.00  from holding Sellas Life Sciences or generate 23.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.0%
Values	Daily Returns

DUKE ENERGY OHIO  vs.  Sellas Life Sciences

DUKE ENERGY OHIO

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DUKE ENERGY OHIO are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, 26442EAG5 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Sellas Life Sciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sellas Life Sciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Sellas Life unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 26442EAG5 and Sellas Life

The main advantage of trading using opposite 26442EAG5 and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442EAG5 position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.

The idea behind DUKE ENERGY OHIO and Sellas Life Sciences 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.