Correlation Between Achilles Therapeutics and NGM Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Achilles Therapeutics and NGM Biopharmaceutica 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 Achilles Therapeutics and NGM Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Achilles Therapeutics PLC and NGM Biopharmaceuticals, you can compare the effects of market volatilities on Achilles Therapeutics and NGM Biopharmaceutica 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 Achilles Therapeutics with a short position of NGM Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Achilles Therapeutics and NGM Biopharmaceutica.
Diversification Opportunities for Achilles Therapeutics and NGM Biopharmaceutica
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Achilles and NGM is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Achilles Therapeutics PLC and NGM Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGM Biopharmaceuticals and Achilles 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 Achilles Therapeutics PLC are associated (or correlated) with NGM Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGM Biopharmaceuticals has no effect on the direction of Achilles Therapeutics i.e., Achilles Therapeutics and NGM Biopharmaceutica go up and down completely randomly.
Pair Corralation between Achilles Therapeutics and NGM Biopharmaceutica
If you would invest 100.00 in Achilles Therapeutics PLC on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Achilles Therapeutics PLC or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Achilles Therapeutics PLC vs. NGM Biopharmaceuticals
Performance |
| Timeline |
| Achilles Therapeutics PLC |
| NGM Biopharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Achilles Therapeutics and NGM Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Achilles Therapeutics and NGM Biopharmaceutica
The main advantage of trading using opposite Achilles Therapeutics and NGM Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Achilles Therapeutics position performs unexpectedly, NGM Biopharmaceutica 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 NGM Biopharmaceutica will offset losses from the drop in NGM Biopharmaceutica's long position.| Achilles Therapeutics vs. Assembly Biosciences | Achilles Therapeutics vs. Spero Therapeutics | Achilles Therapeutics vs. Instil Bio | Achilles Therapeutics vs. Nuvation Bio |
| NGM Biopharmaceutica vs. Instil Bio | NGM Biopharmaceutica vs. Achilles Therapeutics PLC | NGM Biopharmaceutica vs. NextCure | NGM Biopharmaceutica vs. Assembly 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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