Correlation Between Entera Bio and PharmaCyte Biotech
Can any of the company-specific risk be diversified away by investing in both Entera Bio and PharmaCyte Biotech 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 Entera Bio and PharmaCyte Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entera Bio and PharmaCyte Biotech, you can compare the effects of market volatilities on Entera Bio and PharmaCyte Biotech 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 Entera Bio with a short position of PharmaCyte Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entera Bio and PharmaCyte Biotech.
Diversification Opportunities for Entera Bio and PharmaCyte Biotech
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Entera and PharmaCyte is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Entera Bio and PharmaCyte Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaCyte Biotech and Entera 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 Entera Bio are associated (or correlated) with PharmaCyte Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaCyte Biotech has no effect on the direction of Entera Bio i.e., Entera Bio and PharmaCyte Biotech go up and down completely randomly.
Pair Corralation between Entera Bio and PharmaCyte Biotech
Given the investment horizon of 90 days Entera Bio is expected to generate 0.83 times more return on investment than PharmaCyte Biotech. However, Entera Bio is 1.21 times less risky than PharmaCyte Biotech. It trades about 0.09 of its potential returns per unit of risk. PharmaCyte Biotech is currently generating about -0.03 per unit of risk. If you would invest 196.00 in Entera Bio on August 27, 2025 and sell it today you would earn a total of 45.00 from holding Entera Bio or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Entera Bio vs. PharmaCyte Biotech
Performance |
| Timeline |
| Entera Bio |
| PharmaCyte Biotech |
Entera Bio and PharmaCyte Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entera Bio and PharmaCyte Biotech
The main advantage of trading using opposite Entera Bio and PharmaCyte Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entera Bio position performs unexpectedly, PharmaCyte Biotech 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 PharmaCyte Biotech will offset losses from the drop in PharmaCyte Biotech's long position.| Entera Bio vs. FalconStor Software | Entera Bio vs. RadView Software | Entera Bio vs. Internet Gold Golden | Entera Bio vs. ISPAF |
| PharmaCyte Biotech vs. InterContinental Hotels Group | PharmaCyte Biotech vs. Fredonia Mining | PharmaCyte Biotech vs. Oasis Hotel Resort | PharmaCyte Biotech vs. American Hotel Income |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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