Correlation Between AGE Old and Frequency Therapeutics
Can any of the company-specific risk be diversified away by investing in both AGE Old and Frequency 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 AGE Old and Frequency Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGE Old and Frequency Therapeutics, you can compare the effects of market volatilities on AGE Old and Frequency 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 AGE Old with a short position of Frequency Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGE Old and Frequency Therapeutics.
Diversification Opportunities for AGE Old and Frequency Therapeutics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGE and Frequency is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AGE Old and Frequency Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Therapeutics and AGE Old 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 AGE Old are associated (or correlated) with Frequency Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Therapeutics has no effect on the direction of AGE Old i.e., AGE Old and Frequency Therapeutics go up and down completely randomly.
Pair Corralation between AGE Old and Frequency Therapeutics
If you would invest 52.00 in Frequency Therapeutics on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Frequency Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGE Old vs. Frequency Therapeutics
Performance |
| Timeline |
| AGE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Frequency Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AGE Old and Frequency Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGE Old and Frequency Therapeutics
The main advantage of trading using opposite AGE Old and Frequency Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGE Old position performs unexpectedly, Frequency 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 Frequency Therapeutics will offset losses from the drop in Frequency Therapeutics' long position.| AGE Old vs. MAIA Biotechnology | AGE Old vs. Larimar Therapeutics | AGE Old vs. Lyra Therapeutics | AGE Old vs. Lineage Cell Therapeutics |
| Frequency Therapeutics vs. Lineage Cell Therapeutics | Frequency Therapeutics vs. MAIA Biotechnology | Frequency Therapeutics vs. Armata Pharmaceuticals | Frequency Therapeutics vs. Portage Biotech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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