Correlation Between Aerovate Therapeutics and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Aerovate Therapeutics and Marker 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 Aerovate Therapeutics and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerovate Therapeutics and Marker Therapeutics, you can compare the effects of market volatilities on Aerovate Therapeutics and Marker 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 Aerovate Therapeutics with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerovate Therapeutics and Marker Therapeutics.
Diversification Opportunities for Aerovate Therapeutics and Marker Therapeutics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aerovate and Marker is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aerovate Therapeutics and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Aerovate 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 Aerovate Therapeutics are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Aerovate Therapeutics i.e., Aerovate Therapeutics and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Aerovate Therapeutics and Marker Therapeutics
Given the investment horizon of 90 days Aerovate Therapeutics is expected to generate 3.2 times less return on investment than Marker Therapeutics. But when comparing it to its historical volatility, Aerovate Therapeutics is 1.07 times less risky than Marker Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Marker Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Marker Therapeutics on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Marker Therapeutics or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerovate Therapeutics vs. Marker Therapeutics
Performance |
| Timeline |
| Aerovate Therapeutics |
| Marker Therapeutics |
Aerovate Therapeutics and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerovate Therapeutics and Marker Therapeutics
The main advantage of trading using opposite Aerovate Therapeutics and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerovate Therapeutics position performs unexpectedly, Marker 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| Aerovate Therapeutics vs. Adagene | Aerovate Therapeutics vs. Acrivon Therapeutics, Common | Aerovate Therapeutics vs. Rezolute | Aerovate Therapeutics vs. AN2 Therapeutics |
| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv Pharmaceuticals |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |