Correlation Between Protagonist Therapeutics and Uniqure NV

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

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

Diversification Opportunities for Protagonist Therapeutics and Uniqure NV

-0.53

Correlation Coefficient

Protagonist Therapeutics  Uniqure NV

Excellent diversification

The 3 months correlation between Protagonist and Uniqure is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Protagonist Therapeutics and Uniqure NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniqure NV and Protagonist 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 Protagonist Therapeutics are associated (or correlated) with Uniqure NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniqure NV has no effect on the direction of Protagonist Therapeutics i.e., Protagonist Therapeutics and Uniqure NV go up and down completely randomly.

Pair Corralation between Protagonist Therapeutics and Uniqure NV

Given the investment horizon of 90 days Protagonist Therapeutics is expected to under-perform the Uniqure NV. But the stock apears to be less risky and, when comparing its historical volatility, Protagonist Therapeutics is 10.12 times less risky than Uniqure NV. The stock trades about -0.21 of its potential returns per unit of risk. The Uniqure NV is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  578.00  in Uniqure NV on September 23, 2024 and sell it today you would earn a total of  1,120  from holding Uniqure NV or generate 193.77% return on investment over 90 days.

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

Protagonist Therapeutics  vs.  Uniqure NV

Protagonist Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Protagonist Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Uniqure NV

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniqure NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Uniqure NV exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Protagonist Therapeutics and Uniqure NV

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

The idea behind Protagonist Therapeutics and Uniqure NV 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.