Correlation Between Fate Therapeutics and Surrozen
Can any of the company-specific risk be diversified away by investing in both Fate Therapeutics and Surrozen 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 Fate Therapeutics and Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fate Therapeutics and Surrozen, you can compare the effects of market volatilities on Fate Therapeutics and Surrozen 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 Fate Therapeutics with a short position of Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fate Therapeutics and Surrozen.
Diversification Opportunities for Fate Therapeutics and Surrozen
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fate and Surrozen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fate Therapeutics and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Fate 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 Fate Therapeutics are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Fate Therapeutics i.e., Fate Therapeutics and Surrozen go up and down completely randomly.
Pair Corralation between Fate Therapeutics and Surrozen
Given the investment horizon of 90 days Fate Therapeutics is expected to under-perform the Surrozen. In addition to that, Fate Therapeutics is 1.3 times more volatile than Surrozen. It trades about -0.17 of its total potential returns per unit of risk. Surrozen is currently generating about 0.24 per unit of volatility. If you would invest 909.00 in Surrozen on September 25, 2024 and sell it today you would earn a total of 314.00 from holding Surrozen or generate 34.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Fate Therapeutics vs. Surrozen
Performance |
Timeline |
Fate Therapeutics |
Surrozen |
Fate Therapeutics and Surrozen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fate Therapeutics and Surrozen
The main advantage of trading using opposite Fate Therapeutics and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fate Therapeutics position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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