Correlation Between Sprout Social and NovaBridge Biosciences
Can any of the company-specific risk be diversified away by investing in both Sprout Social 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 Sprout Social and NovaBridge Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprout Social and NovaBridge Biosciences, you can compare the effects of market volatilities on Sprout Social 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 Sprout Social with a short position of NovaBridge Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprout Social and NovaBridge Biosciences.
Diversification Opportunities for Sprout Social and NovaBridge Biosciences
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sprout and NovaBridge is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sprout Social and NovaBridge Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaBridge Biosciences and Sprout Social 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 Sprout Social 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 Sprout Social i.e., Sprout Social and NovaBridge Biosciences go up and down completely randomly.
Pair Corralation between Sprout Social and NovaBridge Biosciences
Considering the 90-day investment horizon Sprout Social is expected to under-perform the NovaBridge Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Sprout Social is 2.01 times less risky than NovaBridge Biosciences. The stock trades about -0.09 of its potential returns per unit of risk. The NovaBridge Biosciences is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 409.00 in NovaBridge Biosciences on September 12, 2025 and sell it today you would earn a total of 0.00 from holding NovaBridge Biosciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprout Social vs. NovaBridge Biosciences
Performance |
| Timeline |
| Sprout Social |
| NovaBridge Biosciences |
Sprout Social and NovaBridge Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprout Social and NovaBridge Biosciences
The main advantage of trading using opposite Sprout Social and NovaBridge Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprout Social 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.| Sprout Social vs. Domo Inc | Sprout Social vs. Bumble Inc | Sprout Social vs. Weave Communications | Sprout Social vs. Backblaze |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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