Correlation Between Can Fite and Clal Biotechnology
Can any of the company-specific risk be diversified away by investing in both Can Fite and Clal Biotechnology 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 Can Fite and Clal Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Can Fite Biopharma and Clal Biotechnology Industries, you can compare the effects of market volatilities on Can Fite and Clal Biotechnology 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 Can Fite with a short position of Clal Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fite and Clal Biotechnology.
Diversification Opportunities for Can Fite and Clal Biotechnology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Can and Clal is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Can Fite Biopharma and Clal Biotechnology Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Biotechnology and Can Fite 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 Can Fite Biopharma are associated (or correlated) with Clal Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Biotechnology has no effect on the direction of Can Fite i.e., Can Fite and Clal Biotechnology go up and down completely randomly.
Pair Corralation between Can Fite and Clal Biotechnology
Assuming the 90 days trading horizon Can Fite Biopharma is expected to under-perform the Clal Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Can Fite Biopharma is 1.04 times less risky than Clal Biotechnology. The stock trades about -0.13 of its potential returns per unit of risk. The Clal Biotechnology Industries is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,450 in Clal Biotechnology Industries on January 26, 2024 and sell it today you would earn a total of 190.00 from holding Clal Biotechnology Industries or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fite Biopharma vs. Clal Biotechnology Industries
Performance |
| Timeline |
| Can Fite Biopharma |
| Clal Biotechnology |
Can Fite and Clal Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fite and Clal Biotechnology
The main advantage of trading using opposite Can Fite and Clal Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fite position performs unexpectedly, Clal Biotechnology 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 Clal Biotechnology will offset losses from the drop in Clal Biotechnology's long position.The idea behind Can Fite Biopharma and Clal Biotechnology Industries 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.| Clal Biotechnology vs. Bonus Biogroup | Clal Biotechnology vs. Compugen | Clal Biotechnology vs. Matricelf |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |