Correlation Between Compass Therapeutics and RAPT Therapeutics
Can any of the company-specific risk be diversified away by investing in both Compass Therapeutics and RAPT 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 Compass Therapeutics and RAPT Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compass Therapeutics and RAPT Therapeutics, you can compare the effects of market volatilities on Compass Therapeutics and RAPT 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 Compass Therapeutics with a short position of RAPT Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compass Therapeutics and RAPT Therapeutics.
Diversification Opportunities for Compass Therapeutics and RAPT Therapeutics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Compass and RAPT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Compass Therapeutics and RAPT Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAPT Therapeutics and Compass 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 Compass Therapeutics are associated (or correlated) with RAPT Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAPT Therapeutics has no effect on the direction of Compass Therapeutics i.e., Compass Therapeutics and RAPT Therapeutics go up and down completely randomly.
Pair Corralation between Compass Therapeutics and RAPT Therapeutics
Given the investment horizon of 90 days Compass Therapeutics is expected to generate 3.11 times less return on investment than RAPT Therapeutics. But when comparing it to its historical volatility, Compass Therapeutics is 2.4 times less risky than RAPT Therapeutics. It trades about 0.13 of its potential returns per unit of risk. RAPT Therapeutics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,832 in RAPT Therapeutics on November 19, 2025 and sell it today you would earn a total of 2,940 from holding RAPT Therapeutics or generate 103.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compass Therapeutics vs. RAPT Therapeutics
Performance |
| Timeline |
| Compass Therapeutics |
| RAPT Therapeutics |
Compass Therapeutics and RAPT Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compass Therapeutics and RAPT Therapeutics
The main advantage of trading using opposite Compass Therapeutics and RAPT Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compass Therapeutics position performs unexpectedly, RAPT 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 RAPT Therapeutics will offset losses from the drop in RAPT Therapeutics' long position.| Compass Therapeutics vs. Fulcrum Therapeutics | Compass Therapeutics vs. 4D Molecular Therapeutics | Compass Therapeutics vs. Ocugen Inc | Compass Therapeutics vs. Bicycle Therapeutics |
| RAPT Therapeutics vs. Neumora Therapeutics | RAPT Therapeutics vs. Bicycle Therapeutics | RAPT Therapeutics vs. Omeros | RAPT Therapeutics vs. ADC Therapeutics SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |