Correlation Between Theriva Biologics and Scisparc

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

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

Diversification Opportunities for Theriva Biologics and Scisparc

0.69

Correlation Coefficient

Theriva Biologics  Scisparc

Poor diversification

The 3 months correlation between Theriva and Scisparc is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Theriva Biologics and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and Theriva Biologics 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 Theriva Biologics are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Theriva Biologics i.e., Theriva Biologics and Scisparc go up and down completely randomly.

Pair Corralation between Theriva Biologics and Scisparc

Given the investment horizon of 90 days Theriva Biologics is expected to under-perform the Scisparc. But the stock apears to be less risky and, when comparing its historical volatility, Theriva Biologics is 6.15 times less risky than Scisparc. The stock trades about -0.02 of its potential returns per unit of risk. The Scisparc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  655.00  in Scisparc on July 8, 2025 and sell it today you would lose (199.00) from holding Scisparc or give up 30.38% of portfolio value over 90 days.

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

Theriva Biologics  vs.  Scisparc

Theriva Biologics

Risk-Adjusted Performance

Weakest

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

Scisparc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Scisparc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Scisparc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Theriva Biologics and Scisparc

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

The idea behind Theriva Biologics and Scisparc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.