Correlation Between Cambium Bio and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Cambium Bio and Generation Bio 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 Cambium Bio and Generation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambium Bio and Generation Bio Co, you can compare the effects of market volatilities on Cambium Bio and Generation Bio 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 Cambium Bio with a short position of Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambium Bio and Generation Bio.
Diversification Opportunities for Cambium Bio and Generation Bio
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cambium and Generation is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cambium Bio and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio and Cambium 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 Cambium Bio are associated (or correlated) with Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Cambium Bio i.e., Cambium Bio and Generation Bio go up and down completely randomly.
Pair Corralation between Cambium Bio and Generation Bio
Assuming the 90 days trading horizon Cambium Bio is expected to generate 0.86 times more return on investment than Generation Bio. However, Cambium Bio is 1.16 times less risky than Generation Bio. It trades about 0.01 of its potential returns per unit of risk. Generation Bio Co is currently generating about -0.09 per unit of risk. If you would invest 52.00 in Cambium Bio on August 26, 2025 and sell it today you would earn a total of 0.00 from holding Cambium Bio or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambium Bio vs. Generation Bio Co
Performance |
| Timeline |
| Cambium Bio |
| Generation Bio |
Cambium Bio and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambium Bio and Generation Bio
The main advantage of trading using opposite Cambium Bio and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambium Bio position performs unexpectedly, Generation Bio 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Cambium Bio vs. Insignia Financial | Cambium Bio vs. Corporate Travel Management | Cambium Bio vs. Marimaca Copper Corp | Cambium Bio vs. BNK Banking |
| Generation Bio vs. Verrica Pharmaceuticals | Generation Bio vs. Mural Oncology plc | Generation Bio vs. Jasper Therapeutics | Generation Bio vs. NextCure |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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