Correlation Between Elevation Oncology and Geron
Can any of the company-specific risk be diversified away by investing in both Elevation Oncology and Geron 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 Elevation Oncology and Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elevation Oncology and Geron, you can compare the effects of market volatilities on Elevation Oncology and Geron 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 Elevation Oncology with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevation Oncology and Geron.
Diversification Opportunities for Elevation Oncology and Geron
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elevation and Geron is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elevation Oncology and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and Elevation Oncology 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 Elevation Oncology are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Elevation Oncology i.e., Elevation Oncology and Geron go up and down completely randomly.
Pair Corralation between Elevation Oncology and Geron
Given the investment horizon of 90 days Elevation Oncology is expected to generate 2.24 times more return on investment than Geron. However, Elevation Oncology is 2.24 times more volatile than Geron. It trades about 0.18 of its potential returns per unit of risk. Geron is currently generating about 0.02 per unit of risk. If you would invest 54.00 in Elevation Oncology on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Elevation Oncology or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elevation Oncology vs. Geron
Performance |
| Timeline |
| Elevation Oncology |
| Geron |
Elevation Oncology and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elevation Oncology and Geron
The main advantage of trading using opposite Elevation Oncology and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevation Oncology position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Elevation Oncology vs. Ocean Biomedical | Elevation Oncology vs. Zura Bio Limited | Elevation Oncology vs. Enveric Biosciences | Elevation Oncology vs. Hepion Pharmaceuticals |
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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.
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