Correlation Between Applied Molecular and Surrozen
Can any of the company-specific risk be diversified away by investing in both Applied Molecular and Surrozen 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 Applied Molecular and Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Molecular Transport and Surrozen, you can compare the effects of market volatilities on Applied Molecular and Surrozen 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 Applied Molecular with a short position of Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Molecular and Surrozen.
Diversification Opportunities for Applied Molecular and Surrozen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Applied and Surrozen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Applied Molecular Transport and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Applied Molecular 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 Applied Molecular Transport are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Applied Molecular i.e., Applied Molecular and Surrozen go up and down completely randomly.
Pair Corralation between Applied Molecular and Surrozen
Given the investment horizon of 90 days Applied Molecular is expected to generate 3.29 times less return on investment than Surrozen. In addition to that, Applied Molecular is 1.02 times more volatile than Surrozen. It trades about 0.01 of its total potential returns per unit of risk. Surrozen is currently generating about 0.04 per unit of volatility. If you would invest 938.00 in Surrozen on September 2, 2024 and sell it today you would earn a total of 282.00 from holding Surrozen or generate 30.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.06% |
| Values | Daily Returns |
Applied Molecular Transport vs. Surrozen
Performance |
| Timeline |
| Applied Molecular |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Surrozen |
Applied Molecular and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Molecular and Surrozen
The main advantage of trading using opposite Applied Molecular and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Molecular position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Applied Molecular vs. Aileron Therapeutics | Applied Molecular vs. Bio Path Holdings | Applied Molecular vs. Benitec Biopharma Ltd | Applied Molecular vs. Aerovate Therapeutics |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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