Correlation Between Capricor Therapeutics and Icosavax
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics and Icosavax 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 Capricor Therapeutics and Icosavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and Icosavax, you can compare the effects of market volatilities on Capricor Therapeutics and Icosavax 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 Capricor Therapeutics with a short position of Icosavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and Icosavax.
Diversification Opportunities for Capricor Therapeutics and Icosavax
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capricor and Icosavax is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and Icosavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icosavax and Capricor 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 Capricor Therapeutics are associated (or correlated) with Icosavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icosavax has no effect on the direction of Capricor Therapeutics i.e., Capricor Therapeutics and Icosavax go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and Icosavax
Given the investment horizon of 90 days Capricor Therapeutics is expected to generate 0.97 times more return on investment than Icosavax. However, Capricor Therapeutics is 1.03 times less risky than Icosavax. It trades about 0.07 of its potential returns per unit of risk. Icosavax is currently generating about 0.0 per unit of risk. If you would invest 401.00 in Capricor Therapeutics on November 2, 2024 and sell it today you would earn a total of 1,085 from holding Capricor Therapeutics or generate 270.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Capricor Therapeutics vs. Icosavax
Performance |
| Timeline |
| Capricor Therapeutics |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capricor Therapeutics and Icosavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and Icosavax
The main advantage of trading using opposite Capricor Therapeutics and Icosavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics position performs unexpectedly, Icosavax 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 Icosavax will offset losses from the drop in Icosavax's long position.| Capricor Therapeutics vs. Bio Path Holdings | Capricor Therapeutics vs. NextCure | Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. Akari Therapeutics PLC |
| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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