Correlation Between CD Projekt and Brooklyn ImmunoTherapeuti

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Can any of the company-specific risk be diversified away by investing in both CD Projekt and Brooklyn ImmunoTherapeuti 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 CD Projekt and Brooklyn ImmunoTherapeuti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CD Projekt SA and Brooklyn ImmunoTherapeutics In, you can compare the effects of market volatilities on CD Projekt and Brooklyn ImmunoTherapeuti 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 CD Projekt with a short position of Brooklyn ImmunoTherapeuti. Check out your portfolio center. Please also check ongoing floating volatility patterns of CD Projekt and Brooklyn ImmunoTherapeuti.

Diversification Opportunities for CD Projekt and Brooklyn ImmunoTherapeuti

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between OTGLY and Brooklyn is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding CD Projekt SA and Brooklyn ImmunoTherapeutics In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooklyn ImmunoTherapeuti and CD Projekt 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 CD Projekt SA are associated (or correlated) with Brooklyn ImmunoTherapeuti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooklyn ImmunoTherapeuti has no effect on the direction of CD Projekt i.e., CD Projekt and Brooklyn ImmunoTherapeuti go up and down completely randomly.

Pair Corralation between CD Projekt and Brooklyn ImmunoTherapeuti

Assuming the 90 days horizon CD Projekt SA is expected to generate 0.51 times more return on investment than Brooklyn ImmunoTherapeuti. However, CD Projekt SA is 1.96 times less risky than Brooklyn ImmunoTherapeuti. It trades about -0.01 of its potential returns per unit of risk. Brooklyn ImmunoTherapeutics In is currently generating about -0.02 per unit of risk. If you would invest  1,529  in CD Projekt SA on August 30, 2022 and sell it today you would lose (761.00)  from holding CD Projekt SA or give up 49.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

CD Projekt SA  vs.  Brooklyn ImmunoTherapeutics In

 Performance (%) 
       Timeline  
CD Projekt SA 
OTGLY Performance
16 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in CD Projekt SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, CD Projekt showed solid returns over the last few months and may actually be approaching a breakup point.

OTGLY Price Channel

Brooklyn ImmunoTherapeuti 
Brooklyn Performance
0 of 100
Over the last 90 days Brooklyn ImmunoTherapeutics In has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Brooklyn Price Channel

CD Projekt and Brooklyn ImmunoTherapeuti Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CD Projekt and Brooklyn ImmunoTherapeuti

The main advantage of trading using opposite CD Projekt and Brooklyn ImmunoTherapeuti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CD Projekt position performs unexpectedly, Brooklyn ImmunoTherapeuti 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 Brooklyn ImmunoTherapeuti will offset losses from the drop in Brooklyn ImmunoTherapeuti's long position.
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The idea behind CD Projekt SA and Brooklyn ImmunoTherapeutics In 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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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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