Correlation Between POET Technologies and NovaBridge Biosciences
Can any of the company-specific risk be diversified away by investing in both POET Technologies and NovaBridge Biosciences 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 POET Technologies and NovaBridge Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between POET Technologies and NovaBridge Biosciences, you can compare the effects of market volatilities on POET Technologies and NovaBridge Biosciences 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 POET Technologies with a short position of NovaBridge Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of POET Technologies and NovaBridge Biosciences.
Diversification Opportunities for POET Technologies and NovaBridge Biosciences
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POET and NovaBridge is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding POET Technologies and NovaBridge Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaBridge Biosciences and POET Technologies 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 POET Technologies are associated (or correlated) with NovaBridge Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NovaBridge Biosciences has no effect on the direction of POET Technologies i.e., POET Technologies and NovaBridge Biosciences go up and down completely randomly.
Pair Corralation between POET Technologies and NovaBridge Biosciences
Given the investment horizon of 90 days POET Technologies is expected to generate 1.31 times more return on investment than NovaBridge Biosciences. However, POET Technologies is 1.31 times more volatile than NovaBridge Biosciences. It trades about 0.09 of its potential returns per unit of risk. NovaBridge Biosciences is currently generating about 0.04 per unit of risk. If you would invest 533.00 in POET Technologies on September 11, 2025 and sell it today you would earn a total of 157.00 from holding POET Technologies or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
POET Technologies vs. NovaBridge Biosciences
Performance |
| Timeline |
| POET Technologies |
| NovaBridge Biosciences |
POET Technologies and NovaBridge Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POET Technologies and NovaBridge Biosciences
The main advantage of trading using opposite POET Technologies and NovaBridge Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POET Technologies position performs unexpectedly, NovaBridge Biosciences 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 NovaBridge Biosciences will offset losses from the drop in NovaBridge Biosciences' long position.| POET Technologies vs. Wolfspeed, | POET Technologies vs. Arteris | POET Technologies vs. Ambiq Micro, | POET Technologies vs. Sprout Social |
| NovaBridge Biosciences vs. Galectin Therapeutics | NovaBridge Biosciences vs. Design Therapeutics | NovaBridge Biosciences vs. DiaMedica Therapeutics | NovaBridge Biosciences vs. Aura Biosciences |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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