Correlation Between Theseus Pharmaceuticals and NextCure

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

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

Diversification Opportunities for Theseus Pharmaceuticals and NextCure

0.0

Correlation Coefficient

Theseus Pharmaceuticals  NextCure

Pay attention - limited upside

The 3 months correlation between Theseus and NextCure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Theseus Pharmaceuticals and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure and Theseus Pharmaceuticals 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 Theseus Pharmaceuticals are associated (or correlated) with NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Theseus Pharmaceuticals i.e., Theseus Pharmaceuticals and NextCure go up and down completely randomly.

Pair Corralation between Theseus Pharmaceuticals and NextCure

If you would invest (100.00) in Theseus Pharmaceuticals on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Theseus Pharmaceuticals or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Theseus Pharmaceuticals  vs.  NextCure

Theseus Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Theseus Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Theseus Pharmaceuticals is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

NextCure

Risk-Adjusted Performance

Very Weak

Over the last 90 days NextCure 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Theseus Pharmaceuticals and NextCure

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

The idea behind Theseus Pharmaceuticals and NextCure 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.