Correlation Between Hookipa Pharma and Equillium

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

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

Diversification Opportunities for Hookipa Pharma and Equillium

-0.21

Correlation Coefficient

Hookipa Pharma  Equillium

Very good diversification

The 3 months correlation between Hookipa and Equillium is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium and Hookipa Pharma 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 Hookipa Pharma are associated (or correlated) with Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and Equillium go up and down completely randomly.

Pair Corralation between Hookipa Pharma and Equillium

Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Equillium. But the stock apears to be less risky and, when comparing its historical volatility, Hookipa Pharma is 1.52 times less risky than Equillium. The stock trades about -0.14 of its potential returns per unit of risk. The Equillium is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  74.00  in Equillium on December 29, 2024 and sell it today you would lose (25.00) from holding Equillium or give up 33.78% of portfolio value over 90 days.

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

Hookipa Pharma  vs.  Equillium

Hookipa Pharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hookipa Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Equillium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equillium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic 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.

Pair Trading with Hookipa Pharma and Equillium

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

The idea behind Hookipa Pharma and Equillium 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..