Correlation Between Adverum Biotechnologies and Uniqure NV
Can any of the company-specific risk be diversified away by investing in both Adverum Biotechnologies 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 Adverum Biotechnologies and Uniqure NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adverum Biotechnologies and Uniqure NV, you can compare the effects of market volatilities on Adverum Biotechnologies 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 Adverum Biotechnologies with a short position of Uniqure NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adverum Biotechnologies and Uniqure NV.
Diversification Opportunities for Adverum Biotechnologies and Uniqure NV
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Adverum and Uniqure is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Adverum Biotechnologies and Uniqure NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniqure NV and Adverum Biotechnologies 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 Adverum Biotechnologies 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 Adverum Biotechnologies i.e., Adverum Biotechnologies and Uniqure NV go up and down completely randomly.
Pair Corralation between Adverum Biotechnologies and Uniqure NV
Given the investment horizon of 90 days Adverum Biotechnologies is expected to under-perform the Uniqure NV. But the stock apears to be less risky and, when comparing its historical volatility, Adverum Biotechnologies is 2.93 times less risky than Uniqure NV. The stock trades about -0.06 of its potential returns per unit of risk. The Uniqure NV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 533.00 in Uniqure NV on November 28, 2024 and sell it today you would earn a total of 566.00 from holding Uniqure NV or generate 106.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adverum Biotechnologies vs. Uniqure NV
Performance |
| Timeline |
| Adverum Biotechnologies |
| Uniqure NV |
Adverum Biotechnologies and Uniqure NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adverum Biotechnologies and Uniqure NV
The main advantage of trading using opposite Adverum Biotechnologies and Uniqure NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adverum Biotechnologies 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.| Adverum Biotechnologies vs. Uniqure NV | Adverum Biotechnologies vs. Rocket Pharmaceuticals | Adverum Biotechnologies vs. Rhythm Pharmaceuticals | Adverum Biotechnologies vs. Solid Biosciences LLC |
| Uniqure NV vs. Rocket Pharmaceuticals | Uniqure NV vs. Rhythm Pharmaceuticals | Uniqure NV vs. Solid Biosciences LLC | Uniqure NV vs. MeiraGTx Holdings PLC |
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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