Correlation Between MoonLake Immunotherapeuti and Marketwise

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

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

Diversification Opportunities for MoonLake Immunotherapeuti and Marketwise

-0.69

Correlation Coefficient

MoonLake Immunotherapeuti  Marketwise

Excellent diversification

The 3 months correlation between MoonLake and Marketwise is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MoonLake Immunotherapeutics and Marketwise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marketwise and MoonLake Immunotherapeuti 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 MoonLake Immunotherapeutics are associated (or correlated) with Marketwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marketwise has no effect on the direction of MoonLake Immunotherapeuti i.e., MoonLake Immunotherapeuti and Marketwise go up and down completely randomly.

Pair Corralation between MoonLake Immunotherapeuti and Marketwise

Given the investment horizon of 90 days MoonLake Immunotherapeutics is expected to under-perform the Marketwise. But the stock apears to be less risky and, when comparing its historical volatility, MoonLake Immunotherapeutics is 2.4 times less risky than Marketwise. The stock trades about -0.14 of its potential returns per unit of risk. The Marketwise is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  47.00  in Marketwise on December 23, 2024 and sell it today you would earn a total of  7.00  from holding Marketwise or generate 14.89% return on investment over 90 days.

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

MoonLake Immunotherapeutics  vs.  Marketwise

MoonLake Immunotherapeuti

Risk-Adjusted Performance

Very Weak

Over the last 90 days MoonLake Immunotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly 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.

Marketwise

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marketwise are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Marketwise showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MoonLake Immunotherapeuti and Marketwise

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

The idea behind MoonLake Immunotherapeutics and Marketwise 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.