Correlation Between Zura Bio and Fluent

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

By analyzing existing cross correlation between Zura Bio Limited and Fluent Inc, you can compare the effects of market volatilities on Zura Bio and Fluent 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 Zura Bio with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Fluent.

Diversification Opportunities for Zura Bio and Fluent

0.73

Correlation Coefficient

Zura Bio  Fluent

Poor diversification

The 3 months correlation between Zura and Fluent is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Zura Bio 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 Zura Bio Limited are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Zura Bio i.e., Zura Bio and Fluent go up and down completely randomly.

Pair Corralation between Zura Bio and Fluent

Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Fluent. In addition to that, Zura Bio is 2.34 times more volatile than Fluent Inc. It trades about -0.02 of its total potential returns per unit of risk. Fluent Inc is currently generating about 0.03 per unit of volatility. If you would invest  261.00  in Fluent Inc on October 6, 2024 and sell it today you would earn a total of  2.00  from holding Fluent Inc or generate 0.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Zura Bio Limited  vs.  Fluent Inc

Zura Bio Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zura Bio Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fluent Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Zura Bio and Fluent

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

The idea behind Zura Bio Limited and Fluent Inc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.