Correlation Between Aterian and TuHURA Biosciences

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

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

Diversification Opportunities for Aterian and TuHURA Biosciences

0.51

Correlation Coefficient

Aterian  TuHURA Biosciences

Very weak diversification

The 3 months correlation between Aterian and TuHURA is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and TuHURA Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuHURA Biosciences and Aterian 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 Aterian are associated (or correlated) with TuHURA Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TuHURA Biosciences has no effect on the direction of Aterian i.e., Aterian and TuHURA Biosciences go up and down completely randomly.

Pair Corralation between Aterian and TuHURA Biosciences

Given the investment horizon of 90 days Aterian is expected to under-perform the TuHURA Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Aterian is 1.89 times less risky than TuHURA Biosciences. The stock trades about -0.06 of its potential returns per unit of risk. The TuHURA Biosciences is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  445.00  in TuHURA Biosciences on October 25, 2024 and sell it today you would earn a total of  19.00  from holding TuHURA Biosciences or generate 4.27% return on investment over 90 days.

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

Aterian  vs.  TuHURA Biosciences

Aterian

Risk-Adjusted Performance

0 of 100

Very Weak

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

TuHURA Biosciences

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TuHURA Biosciences are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, TuHURA Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aterian and TuHURA Biosciences

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

The idea behind Aterian and TuHURA Biosciences 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.