Correlation Between Allogene Therapeutics and Bellus Health

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Allogene Therapeutics and Bellus Health 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 Allogene Therapeutics and Bellus Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allogene Therapeutics and Bellus Health, you can compare the effects of market volatilities on Allogene Therapeutics and Bellus Health 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 Allogene Therapeutics with a short position of Bellus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allogene Therapeutics and Bellus Health.

Diversification Opportunities for Allogene Therapeutics and Bellus Health

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Allogene and Bellus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Allogene Therapeutics and Bellus Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellus Health and Allogene Therapeutics 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 Allogene Therapeutics are associated (or correlated) with Bellus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellus Health has no effect on the direction of Allogene Therapeutics i.e., Allogene Therapeutics and Bellus Health go up and down completely randomly.

Pair Corralation between Allogene Therapeutics and Bellus Health

Given the investment horizon of 90 days Allogene Therapeutics is expected to under-perform the Bellus Health. In addition to that, Allogene Therapeutics is 1.63 times more volatile than Bellus Health. It trades about -0.25 of its total potential returns per unit of risk. Bellus Health is currently generating about -0.15 per unit of volatility. If you would invest  1,140  in Bellus Health on July 2, 2022 and sell it today you would lose (116.00)  from holding Bellus Health or give up 10.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Allogene Therapeutics  vs.  Bellus Health

 Performance (%) 
       Timeline  
Allogene Therapeutics 
Allogene Performance
0 of 100
Over the last 90 days Allogene Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Allogene Therapeutics is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Allogene Price Channel

Bellus Health 
Bellus Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bellus Health are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Bellus Health may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Bellus Price Channel

Allogene Therapeutics and Bellus Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Allogene Therapeutics and Bellus Health

The main advantage of trading using opposite Allogene Therapeutics and Bellus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allogene Therapeutics position performs unexpectedly, Bellus Health 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 Bellus Health will offset losses from the drop in Bellus Health's long position.
Allogene Therapeutics vs. International Consol
Allogene Therapeutics vs. Wizz Air Holdings
Allogene Therapeutics vs. Cathay Pacific Airwa
Allogene Therapeutics vs. Turk Hava Yallari
The idea behind Allogene Therapeutics and Bellus Health 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.
Bellus Health vs. Sierra Wireless IN
Bellus Health vs. Juniper Networks
Bellus Health vs. Cisco Systems
Bellus Health vs. Harmonic
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go