Correlation Between Chimeric Therapeutics and Brambles

Can any of the company-specific risk be diversified away by investing in both Chimeric Therapeutics and Brambles 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 Chimeric Therapeutics and Brambles into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chimeric Therapeutics and Brambles, you can compare the effects of market volatilities on Chimeric Therapeutics and Brambles 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 Chimeric Therapeutics with a short position of Brambles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimeric Therapeutics and Brambles.

Diversification Opportunities for Chimeric Therapeutics and Brambles

-0.33

Correlation Coefficient

Chimeric Therapeutics  Brambles

Very good diversification

The 3 months correlation between Chimeric and Brambles is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chimeric Therapeutics and Brambles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brambles and Chimeric Therapeutics 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 Chimeric Therapeutics are associated (or correlated) with Brambles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brambles has no effect on the direction of Chimeric Therapeutics i.e., Chimeric Therapeutics and Brambles go up and down completely randomly.

Pair Corralation between Chimeric Therapeutics and Brambles

Assuming the 90 days trading horizon Chimeric Therapeutics is expected to generate 11.54 times more return on investment than Brambles. However, Chimeric Therapeutics is 11.54 times more volatile than Brambles. It trades about 0.06 of its potential returns per unit of risk. Brambles is currently generating about 0.24 per unit of risk. If you would invest  0.50  in Chimeric Therapeutics on April 25, 2025 and sell it today you would earn a total of  0.00  from holding Chimeric Therapeutics 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

Chimeric Therapeutics  vs.  Brambles

Chimeric Therapeutics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Chimeric Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Chimeric Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Brambles

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brambles are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Brambles unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chimeric Therapeutics and Brambles

The main advantage of trading using opposite Chimeric Therapeutics and Brambles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimeric Therapeutics position performs unexpectedly, Brambles 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 Brambles will offset losses from the drop in Brambles' long position.

The idea behind Chimeric Therapeutics and Brambles 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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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.