Correlation Between Capricor Therapeutics and NextCure
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics and NextCure 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 NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and NextCure, you can compare the effects of market volatilities on Capricor Therapeutics and NextCure 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 NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and NextCure.
Diversification Opportunities for Capricor Therapeutics and NextCure
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capricor and NextCure is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure 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 NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Capricor Therapeutics i.e., Capricor Therapeutics and NextCure go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and NextCure
Given the investment horizon of 90 days Capricor Therapeutics is expected to generate 0.9 times more return on investment than NextCure. However, Capricor Therapeutics is 1.11 times less risky than NextCure. It trades about 0.02 of its potential returns per unit of risk. NextCure is currently generating about 0.0 per unit of risk. If you would invest 1,496 in Capricor Therapeutics on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Capricor Therapeutics or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capricor Therapeutics vs. NextCure
Performance |
| Timeline |
| Capricor Therapeutics |
| NextCure |
Capricor Therapeutics and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and NextCure
The main advantage of trading using opposite Capricor Therapeutics and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Capricor Therapeutics vs. Bio Path Holdings | Capricor Therapeutics vs. NextCure | Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. Akari Therapeutics PLC |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |