Correlation Between Bellus Health and Cytokinetics

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

Diversification Opportunities for Bellus Health and Cytokinetics

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Bellus and Cytokinetics is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bellus Health and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics and Bellus Health 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 Bellus Health are associated (or correlated) with Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Bellus Health i.e., Bellus Health and Cytokinetics go up and down completely randomly.

Pair Corralation between Bellus Health and Cytokinetics

Considering the 90-day investment horizon Bellus Health is expected to generate 2.25 times less return on investment than Cytokinetics. In addition to that, Bellus Health is 1.02 times more volatile than Cytokinetics. It trades about 0.08 of its total potential returns per unit of risk. Cytokinetics is currently generating about 0.18 per unit of volatility. If you would invest  3,947  in Cytokinetics on June 26, 2022 and sell it today you would earn a total of  1,132  from holding Cytokinetics or generate 28.68% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Bellus Health  vs.  Cytokinetics

 Performance (%) 
       Timeline  
Bellus Health 
Bellus Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bellus Health are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Bellus Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bellus Price Channel

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

Cytokinetics Price Channel

Bellus Health and Cytokinetics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bellus Health and Cytokinetics

The main advantage of trading using opposite Bellus Health and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellus Health position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.
Bellus Health vs. BRENNTAG SE
Bellus Health vs. RPM International
Bellus Health vs. Vulcan Intl Cp
Bellus Health vs. NOVOZYMES AS
The idea behind Bellus Health and Cytokinetics 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.
Cytokinetics vs. Japan Airlines
Cytokinetics vs. Frontier Group Holdings
Cytokinetics vs. Qantas Airways ADR
Cytokinetics vs. Exchange Income Corp
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go