Correlation Between Cingulate Warrants and Silence Therapeutics
Can any of the company-specific risk be diversified away by investing in both Cingulate Warrants and Silence 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 Cingulate Warrants and Silence Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cingulate Warrants and Silence Therapeutics PLC, you can compare the effects of market volatilities on Cingulate Warrants and Silence 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 Cingulate Warrants with a short position of Silence Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cingulate Warrants and Silence Therapeutics.
Diversification Opportunities for Cingulate Warrants and Silence Therapeutics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cingulate and Silence is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cingulate Warrants and Silence Therapeutics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silence Therapeutics PLC and Cingulate Warrants 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 Cingulate Warrants are associated (or correlated) with Silence Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silence Therapeutics PLC has no effect on the direction of Cingulate Warrants i.e., Cingulate Warrants and Silence Therapeutics go up and down completely randomly.
Pair Corralation between Cingulate Warrants and Silence Therapeutics
Assuming the 90 days horizon Cingulate Warrants is expected to generate 1.9 times more return on investment than Silence Therapeutics. However, Cingulate Warrants is 1.9 times more volatile than Silence Therapeutics PLC. It trades about 0.03 of its potential returns per unit of risk. Silence Therapeutics PLC is currently generating about -0.35 per unit of risk. If you would invest 4.49 in Cingulate Warrants on September 12, 2024 and sell it today you would lose (0.86) from holding Cingulate Warrants or give up 19.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cingulate Warrants vs. Silence Therapeutics PLC
Performance |
| Timeline |
| Cingulate Warrants |
| Silence Therapeutics PLC |
Cingulate Warrants and Silence Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cingulate Warrants and Silence Therapeutics
The main advantage of trading using opposite Cingulate Warrants and Silence Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cingulate Warrants position performs unexpectedly, Silence 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 Silence Therapeutics will offset losses from the drop in Silence Therapeutics' long position.| Cingulate Warrants vs. Equillium | Cingulate Warrants vs. DiaMedica Therapeutics | Cingulate Warrants vs. Valneva SE ADR | Cingulate Warrants vs. Vivani Medical |
| Silence Therapeutics vs. Cidara Therapeutics | Silence Therapeutics vs. Applied Therapeutics | Silence Therapeutics vs. CytomX Therapeutics | Silence Therapeutics vs. Shattuck Labs |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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