Correlation Between Structure Therapeutics and Humacyte

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

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

Diversification Opportunities for Structure Therapeutics and Humacyte

0.89

Correlation Coefficient

Structure Therapeutics  Humacyte

Very poor diversification

The 3 months correlation between Structure and Humacyte is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Structure Therapeutics America and Humacyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humacyte and Structure 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 Structure Therapeutics American are associated (or correlated) with Humacyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humacyte has no effect on the direction of Structure Therapeutics i.e., Structure Therapeutics and Humacyte go up and down completely randomly.

Pair Corralation between Structure Therapeutics and Humacyte

Given the investment horizon of 90 days Structure Therapeutics American is expected to generate 0.77 times more return on investment than Humacyte. However, Structure Therapeutics American is 1.29 times less risky than Humacyte. It trades about -0.08 of its potential returns per unit of risk. Humacyte is currently generating about -0.22 per unit of risk. If you would invest  2,663  in Structure Therapeutics American on December 30, 2024 and sell it today you would lose (686.00) from holding Structure Therapeutics American or give up 25.76% of portfolio value over 90 days.

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

Structure Therapeutics America  vs.  Humacyte

Structure Therapeutics

Risk-Adjusted Performance

Very Weak

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

Humacyte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humacyte has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Structure Therapeutics and Humacyte

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

The idea behind Structure Therapeutics American and Humacyte 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.