Correlation Between MoonLake Immunotherapeuti and Streamline Health

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

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

Diversification Opportunities for MoonLake Immunotherapeuti and Streamline Health

0.38

Correlation Coefficient

MoonLake Immunotherapeuti  Streamline Health

Weak diversification

The 3 months correlation between MoonLake and Streamline is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MoonLake Immunotherapeutics and Streamline Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamline Health 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 Streamline Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamline Health has no effect on the direction of MoonLake Immunotherapeuti i.e., MoonLake Immunotherapeuti and Streamline Health go up and down completely randomly.

Pair Corralation between MoonLake Immunotherapeuti and Streamline Health

Given the investment horizon of 90 days MoonLake Immunotherapeutics is expected to under-perform the Streamline Health. But the stock apears to be less risky and, when comparing its historical volatility, MoonLake Immunotherapeutics is 1.5 times less risky than Streamline Health. The stock trades about -0.14 of its potential returns per unit of risk. The Streamline Health Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  327.00  in Streamline Health Solutions on December 23, 2024 and sell it today you would lose (10.00) from holding Streamline Health Solutions or give up 3.06% of portfolio value over 90 days.

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

MoonLake Immunotherapeutics  vs.  Streamline Health Solutions

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.

Streamline Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Streamline Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Streamline Health is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MoonLake Immunotherapeuti and Streamline Health

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

The idea behind MoonLake Immunotherapeutics and Streamline Health Solutions 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..