Correlation Between Medicus Pharma and Marker Therapeutics

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

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

Diversification Opportunities for Medicus Pharma and Marker Therapeutics

-0.54

Correlation Coefficient

Medicus Pharma  Marker Therapeutics

Excellent diversification

The 3 months correlation between Medicus and Marker is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Medicus Pharma Ltd and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Medicus 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 Medicus Pharma Ltd are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Medicus Pharma i.e., Medicus Pharma and Marker Therapeutics go up and down completely randomly.

Pair Corralation between Medicus Pharma and Marker Therapeutics

Given the investment horizon of 90 days Medicus Pharma Ltd is expected to generate 1.18 times more return on investment than Marker Therapeutics. However, Medicus Pharma is 1.18 times more volatile than Marker Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Marker Therapeutics is currently generating about -0.2 per unit of risk. If you would invest  277.00  in Medicus Pharma Ltd on December 21, 2024 and sell it today you would earn a total of  72.50  from holding Medicus Pharma Ltd or generate 26.17% return on investment over 90 days.

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

Medicus Pharma Ltd  vs.  Marker Therapeutics

Medicus Pharma

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Medicus Pharma Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Medicus Pharma showed solid returns over the last few months and may actually be approaching a breakup point.

Marker Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marker Therapeutics 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 forward-looking signals 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 Medicus Pharma and Marker Therapeutics

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

The idea behind Medicus Pharma Ltd and Marker Therapeutics 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.