Correlation Between Eliem Therapeutics and Chimerix
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics and Chimerix 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 Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eliem Therapeutics and Chimerix, you can compare the effects of market volatilities on Eliem Therapeutics and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and Chimerix.
Diversification Opportunities for Eliem Therapeutics and Chimerix
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eliem and Chimerix is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Eliem Therapeutics i.e., Eliem Therapeutics and Chimerix go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and Chimerix
Given the investment horizon of 90 days Eliem Therapeutics is expected to under-perform the Chimerix. In addition to that, Eliem Therapeutics is 1.56 times more volatile than Chimerix. It trades about -0.24 of its total potential returns per unit of risk. Chimerix is currently generating about 0.02 per unit of volatility. If you would invest 87.00 in Chimerix on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Chimerix or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Eliem Therapeutics vs. Chimerix
Performance |
| Timeline |
| Eliem Therapeutics |
| Chimerix |
Eliem Therapeutics and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and Chimerix
The main advantage of trading using opposite Eliem Therapeutics and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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