Correlation Between Cabaletta Bio and BioAge Labs,

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

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

Diversification Opportunities for Cabaletta Bio and BioAge Labs,

0.67

Correlation Coefficient

Cabaletta Bio  BioAge Labs,

Poor diversification

The 3 months correlation between Cabaletta and BioAge is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cabaletta Bio and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and Cabaletta 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 Cabaletta Bio are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of Cabaletta Bio i.e., Cabaletta Bio and BioAge Labs, go up and down completely randomly.

Pair Corralation between Cabaletta Bio and BioAge Labs,

Given the investment horizon of 90 days Cabaletta Bio is expected to generate 1.13 times less return on investment than BioAge Labs,. In addition to that, Cabaletta Bio is 1.64 times more volatile than BioAge Labs,. It trades about 0.1 of its total potential returns per unit of risk. BioAge Labs, is currently generating about 0.19 per unit of volatility. If you would invest  455.00  in BioAge Labs, on August 15, 2025 and sell it today you would earn a total of  346.00  from holding BioAge Labs, or generate 76.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cabaletta Bio  vs.  BioAge Labs,

Cabaletta Bio

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cabaletta Bio are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Cabaletta Bio sustained solid returns over the last few months and may actually be approaching a breakup point.

BioAge Labs,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BioAge Labs, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BioAge Labs, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cabaletta Bio and BioAge Labs,

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

The idea behind Cabaletta Bio and BioAge Labs, 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.