Correlation Between Simulations Plus and Abcellera Biologics

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

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

Diversification Opportunities for Simulations Plus and Abcellera Biologics

-0.9

Correlation Coefficient

Simulations Plus  Abcellera Biologics

Pay attention - limited upside

The 3 months correlation between Simulations and Abcellera is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Simulations Plus and Abcellera Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abcellera Biologics and Simulations Plus 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 Simulations Plus are associated (or correlated) with Abcellera Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abcellera Biologics has no effect on the direction of Simulations Plus i.e., Simulations Plus and Abcellera Biologics go up and down completely randomly.

Pair Corralation between Simulations Plus and Abcellera Biologics

Considering the 90-day investment horizon Simulations Plus is expected to under-perform the Abcellera Biologics. In addition to that, Simulations Plus is 1.03 times more volatile than Abcellera Biologics. It trades about -0.21 of its total potential returns per unit of risk. Abcellera Biologics is currently generating about 0.24 per unit of volatility. If you would invest  203.00  in Abcellera Biologics on May 6, 2025 and sell it today you would earn a total of  215.50  from holding Abcellera Biologics or generate 106.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Simulations Plus  vs.  Abcellera Biologics

Simulations Plus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simulations Plus has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Abcellera Biologics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Abcellera Biologics are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Abcellera Biologics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Simulations Plus and Abcellera Biologics

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

The idea behind Simulations Plus and Abcellera Biologics 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.