Correlation Between Structure Therapeutics and Puma Biotechnology
Can any of the company-specific risk be diversified away by investing in both Structure Therapeutics and Puma Biotechnology 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 Puma Biotechnology 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 Puma Biotechnology, you can compare the effects of market volatilities on Structure Therapeutics and Puma Biotechnology 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 Puma Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Structure Therapeutics and Puma Biotechnology.
Diversification Opportunities for Structure Therapeutics and Puma Biotechnology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Structure and Puma is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Structure Therapeutics America and Puma Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Biotechnology 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 Puma Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Biotechnology has no effect on the direction of Structure Therapeutics i.e., Structure Therapeutics and Puma Biotechnology go up and down completely randomly.
Pair Corralation between Structure Therapeutics and Puma Biotechnology
Given the investment horizon of 90 days Structure Therapeutics American is expected to under-perform the Puma Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Structure Therapeutics American is 1.04 times less risky than Puma Biotechnology. The stock trades about -0.1 of its potential returns per unit of risk. The Puma Biotechnology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Puma Biotechnology on December 28, 2024 and sell it today you would earn a total of 2.00 from holding Puma Biotechnology or generate 0.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Structure Therapeutics America vs. Puma Biotechnology
Performance |
Timeline |
Structure Therapeutics |
Puma Biotechnology |
Structure Therapeutics and Puma Biotechnology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Structure Therapeutics and Puma Biotechnology
The main advantage of trading using opposite Structure Therapeutics and Puma Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Structure Therapeutics position performs unexpectedly, Puma Biotechnology 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 Puma Biotechnology will offset losses from the drop in Puma Biotechnology's long position.Structure Therapeutics vs. Day One Biopharmaceuticals | Structure Therapeutics vs. Mirum Pharmaceuticals | Structure Therapeutics vs. Rocket Pharmaceuticals | Structure Therapeutics vs. Avidity Biosciences |
Puma Biotechnology vs. Ultragenyx | Puma Biotechnology vs. Crinetics Pharmaceuticals | Puma Biotechnology vs. Arvinas | Puma Biotechnology vs. Revolution Medicines |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |