Correlation Between Solid Biosciences and Clearside Biomedical

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

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

Diversification Opportunities for Solid Biosciences and Clearside Biomedical

-0.52

Correlation Coefficient

Solid Biosciences  Clearside Biomedical

Excellent diversification

The 3 months correlation between Solid and Clearside is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Solid Biosciences LLC and Clearside Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearside Biomedical and Solid Biosciences 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 Solid Biosciences LLC are associated (or correlated) with Clearside Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearside Biomedical has no effect on the direction of Solid Biosciences i.e., Solid Biosciences and Clearside Biomedical go up and down completely randomly.

Pair Corralation between Solid Biosciences and Clearside Biomedical

Given the investment horizon of 90 days Solid Biosciences LLC is expected to generate 0.44 times more return on investment than Clearside Biomedical. However, Solid Biosciences LLC is 2.28 times less risky than Clearside Biomedical. It trades about 0.26 of its potential returns per unit of risk. Clearside Biomedical is currently generating about -0.05 per unit of risk. If you would invest  295.00  in Solid Biosciences LLC on May 20, 2025 and sell it today you would earn a total of  308.00  from holding Solid Biosciences LLC or generate 104.41% return on investment over 90 days.

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

Solid Biosciences LLC  vs.  Clearside Biomedical

Solid Biosciences LLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Biosciences LLC are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Solid Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Clearside Biomedical

Risk-Adjusted Performance

Weakest

Over the last 90 days Clearside Biomedical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Solid Biosciences and Clearside Biomedical

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

The idea behind Solid Biosciences LLC and Clearside Biomedical 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..