Correlation Between Replimune and Structure Therapeutics
Can any of the company-specific risk be diversified away by investing in both Replimune and Structure 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 Replimune and Structure Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Replimune Group and Structure Therapeutics American, you can compare the effects of market volatilities on Replimune and Structure 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 Replimune with a short position of Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Replimune and Structure Therapeutics.
Diversification Opportunities for Replimune and Structure Therapeutics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Replimune and Structure is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure Therapeutics and Replimune 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 Replimune Group are associated (or correlated) with Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of Replimune i.e., Replimune and Structure Therapeutics go up and down completely randomly.
Pair Corralation between Replimune and Structure Therapeutics
Given the investment horizon of 90 days Replimune Group is expected to generate 1.34 times more return on investment than Structure Therapeutics. However, Replimune is 1.34 times more volatile than Structure Therapeutics American. It trades about 0.08 of its potential returns per unit of risk. Structure Therapeutics American is currently generating about -0.02 per unit of risk. If you would invest 1,053 in Replimune Group on September 7, 2024 and sell it today you would earn a total of 252.00 from holding Replimune Group or generate 23.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Replimune Group vs. Structure Therapeutics America
Performance |
Timeline |
Replimune Group |
Structure Therapeutics |
Replimune and Structure Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Replimune and Structure Therapeutics
The main advantage of trading using opposite Replimune and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Replimune position performs unexpectedly, Structure 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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