Correlation Between Eliem Therapeutics and Galectin Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics and Galectin 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 Galectin 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 Galectin Therapeutics, you can compare the effects of market volatilities on Eliem Therapeutics and Galectin 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 Galectin Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and Galectin Therapeutics.
Diversification Opportunities for Eliem Therapeutics and Galectin Therapeutics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eliem and Galectin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and Galectin Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galectin 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 Galectin Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galectin Therapeutics has no effect on the direction of Eliem Therapeutics i.e., Eliem Therapeutics and Galectin Therapeutics go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and Galectin Therapeutics
Given the investment horizon of 90 days Eliem Therapeutics is expected to under-perform the Galectin Therapeutics. In addition to that, Eliem Therapeutics is 1.55 times more volatile than Galectin Therapeutics. It trades about -0.25 of its total potential returns per unit of risk. Galectin Therapeutics is currently generating about 0.17 per unit of volatility. If you would invest 255.00 in Galectin Therapeutics on August 30, 2024 and sell it today you would earn a total of 29.00 from holding Galectin Therapeutics or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eliem Therapeutics vs. Galectin Therapeutics
Performance |
| Timeline |
| Eliem Therapeutics |
| Galectin Therapeutics |
Eliem Therapeutics and Galectin Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and Galectin Therapeutics
The main advantage of trading using opposite Eliem Therapeutics and Galectin Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics position performs unexpectedly, Galectin 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 Galectin Therapeutics will offset losses from the drop in Galectin Therapeutics' long position.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| Galectin Therapeutics vs. Madrigal Pharmaceuticals | Galectin Therapeutics vs. Viking Therapeutics | Galectin Therapeutics vs. Sarepta Therapeutics | Galectin Therapeutics vs. Hepion Pharmaceuticals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |