Correlation Between Capricor Therapeutics and Soleno Therapeutics
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics and Soleno 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 Capricor Therapeutics and Soleno Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and Soleno Therapeutics, you can compare the effects of market volatilities on Capricor Therapeutics and Soleno 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 Capricor Therapeutics with a short position of Soleno Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and Soleno Therapeutics.
Diversification Opportunities for Capricor Therapeutics and Soleno Therapeutics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Capricor and Soleno is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and Soleno Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soleno Therapeutics 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 Soleno Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soleno Therapeutics has no effect on the direction of Capricor Therapeutics i.e., Capricor Therapeutics and Soleno Therapeutics go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and Soleno Therapeutics
Given the investment horizon of 90 days Capricor Therapeutics is expected to generate 3.21 times less return on investment than Soleno Therapeutics. But when comparing it to its historical volatility, Capricor Therapeutics is 3.88 times less risky than Soleno Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Soleno Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Soleno Therapeutics on November 2, 2024 and sell it today you would earn a total of 4,752 from holding Soleno Therapeutics or generate 2190.09% 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. Soleno Therapeutics
Performance |
| Timeline |
| Capricor Therapeutics |
| Soleno Therapeutics |
Capricor Therapeutics and Soleno Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and Soleno Therapeutics
The main advantage of trading using opposite Capricor Therapeutics and Soleno Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics position performs unexpectedly, Soleno 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 Soleno Therapeutics will offset losses from the drop in Soleno Therapeutics' long position.| Capricor Therapeutics vs. Bio Path Holdings | Capricor Therapeutics vs. NextCure | Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. Akari Therapeutics PLC |
| Soleno Therapeutics vs. Annexon | Soleno Therapeutics vs. Bolt Biotherapeutics | Soleno Therapeutics vs. Lyra Therapeutics | Soleno Therapeutics vs. Pulmatrix |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |