Correlation Between HLS Therapeutics and Satellos Bioscience

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

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

Diversification Opportunities for HLS Therapeutics and Satellos Bioscience

0.45

Correlation Coefficient

HLS Therapeutics  Satellos Bioscience

Very weak diversification

The 3 months correlation between HLS and Satellos is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HLS Therapeutics and Satellos Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellos Bioscience and HLS 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 HLS Therapeutics are associated (or correlated) with Satellos Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellos Bioscience has no effect on the direction of HLS Therapeutics i.e., HLS Therapeutics and Satellos Bioscience go up and down completely randomly.

Pair Corralation between HLS Therapeutics and Satellos Bioscience

Assuming the 90 days trading horizon HLS Therapeutics is expected to under-perform the Satellos Bioscience. But the stock apears to be less risky and, when comparing its historical volatility, HLS Therapeutics is 2.25 times less risky than Satellos Bioscience. The stock trades about -0.03 of its potential returns per unit of risk. The Satellos Bioscience is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  61.00  in Satellos Bioscience on August 19, 2025 and sell it today you would earn a total of  17.00  from holding Satellos Bioscience or generate 27.87% return on investment over 90 days.

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

HLS Therapeutics  vs.  Satellos Bioscience

HLS Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days HLS Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, HLS Therapeutics is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Satellos Bioscience

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Satellos Bioscience are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Satellos Bioscience displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HLS Therapeutics and Satellos Bioscience

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

The idea behind HLS Therapeutics and Satellos Bioscience 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.