Correlation Between Eliem Therapeutics and Compass Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics and Compass 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 Eliem Therapeutics and Compass Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eliem Therapeutics and Compass Therapeutics, you can compare the effects of market volatilities on Eliem Therapeutics and Compass 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 Eliem Therapeutics with a short position of Compass Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and Compass Therapeutics.
Diversification Opportunities for Eliem Therapeutics and Compass Therapeutics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eliem and Compass is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and Compass Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass Therapeutics and Eliem 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 Eliem Therapeutics are associated (or correlated) with Compass Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass Therapeutics has no effect on the direction of Eliem Therapeutics i.e., Eliem Therapeutics and Compass Therapeutics go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and Compass Therapeutics
Given the investment horizon of 90 days Eliem Therapeutics is expected to under-perform the Compass Therapeutics. In addition to that, Eliem Therapeutics is 1.01 times more volatile than Compass Therapeutics. It trades about -0.22 of its total potential returns per unit of risk. Compass Therapeutics is currently generating about -0.06 per unit of volatility. If you would invest 171.00 in Compass Therapeutics on August 31, 2024 and sell it today you would lose (15.00) from holding Compass Therapeutics or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eliem Therapeutics vs. Compass Therapeutics
Performance |
| Timeline |
| Eliem Therapeutics |
| Compass Therapeutics |
Eliem Therapeutics and Compass Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and Compass Therapeutics
The main advantage of trading using opposite Eliem Therapeutics and Compass Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics position performs unexpectedly, Compass 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 Compass Therapeutics will offset losses from the drop in Compass Therapeutics' long position.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| Compass Therapeutics vs. Cue Biopharma | Compass Therapeutics vs. Eliem Therapeutics | Compass Therapeutics vs. Inhibrx | Compass Therapeutics vs. Molecular Partners AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |