Correlation Between Monte Rosa and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Monte Rosa and Sellas Life 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 Monte Rosa and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monte Rosa Therapeutics and Sellas Life Sciences, you can compare the effects of market volatilities on Monte Rosa and Sellas Life 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 Monte Rosa with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monte Rosa and Sellas Life.
Diversification Opportunities for Monte Rosa and Sellas Life
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Monte and Sellas is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Monte Rosa Therapeutics and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and Monte Rosa 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 Monte Rosa Therapeutics are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Monte Rosa i.e., Monte Rosa and Sellas Life go up and down completely randomly.
Pair Corralation between Monte Rosa and Sellas Life
Given the investment horizon of 90 days Monte Rosa Therapeutics is expected to under-perform the Sellas Life. But the stock apears to be less risky and, when comparing its historical volatility, Monte Rosa Therapeutics is 1.72 times less risky than Sellas Life. The stock trades about -0.2 of its potential returns per unit of risk. The Sellas Life Sciences is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Sellas Life Sciences on December 1, 2024 and sell it today you would earn a total of 2.00 from holding Sellas Life Sciences or generate 1.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Monte Rosa Therapeutics vs. Sellas Life Sciences
Performance |
Timeline |
Monte Rosa Therapeutics |
Sellas Life Sciences |
Monte Rosa and Sellas Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Monte Rosa and Sellas Life
The main advantage of trading using opposite Monte Rosa and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monte Rosa position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.Monte Rosa vs. Nkarta Inc | Monte Rosa vs. Lyell Immunopharma | Monte Rosa vs. Generation Bio Co | Monte Rosa vs. Sana Biotechnology |
Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |