Correlation Between RAPT Therapeutics and Fate Therapeutics
Can any of the company-specific risk be diversified away by investing in both RAPT Therapeutics and Fate 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 RAPT Therapeutics and Fate Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAPT Therapeutics and Fate Therapeutics, you can compare the effects of market volatilities on RAPT Therapeutics and Fate 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 RAPT Therapeutics with a short position of Fate Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAPT Therapeutics and Fate Therapeutics.
Diversification Opportunities for RAPT Therapeutics and Fate Therapeutics
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RAPT and Fate is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding RAPT Therapeutics and Fate Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fate Therapeutics and RAPT 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 RAPT Therapeutics are associated (or correlated) with Fate Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fate Therapeutics has no effect on the direction of RAPT Therapeutics i.e., RAPT Therapeutics and Fate Therapeutics go up and down completely randomly.
Pair Corralation between RAPT Therapeutics and Fate Therapeutics
Given the investment horizon of 90 days RAPT Therapeutics is expected to generate 3.09 times less return on investment than Fate Therapeutics. In addition to that, RAPT Therapeutics is 1.98 times more volatile than Fate Therapeutics. It trades about 0.0 of its total potential returns per unit of risk. Fate Therapeutics is currently generating about 0.03 per unit of volatility. If you would invest 173.00 in Fate Therapeutics on September 24, 2024 and sell it today you would lose (5.00) from holding Fate Therapeutics or give up 2.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
RAPT Therapeutics vs. Fate Therapeutics
Performance |
Timeline |
RAPT Therapeutics |
Fate Therapeutics |
RAPT Therapeutics and Fate Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with RAPT Therapeutics and Fate Therapeutics
The main advantage of trading using opposite RAPT Therapeutics and Fate Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAPT Therapeutics position performs unexpectedly, Fate 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 Fate Therapeutics will offset losses from the drop in Fate Therapeutics' long position.RAPT Therapeutics vs. Fate Therapeutics | RAPT Therapeutics vs. Sana Biotechnology | RAPT Therapeutics vs. Caribou Biosciences | RAPT Therapeutics vs. Arcus Biosciences |
Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |