Correlation Between Eliem Therapeutics and Seres Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eliem Therapeutics and Seres 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 Seres 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 Seres Therapeutics, you can compare the effects of market volatilities on Eliem Therapeutics and Seres 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 Seres Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eliem Therapeutics and Seres Therapeutics.
Diversification Opportunities for Eliem Therapeutics and Seres Therapeutics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eliem and Seres is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eliem Therapeutics and Seres Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seres 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 Seres Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seres Therapeutics has no effect on the direction of Eliem Therapeutics i.e., Eliem Therapeutics and Seres Therapeutics go up and down completely randomly.
Pair Corralation between Eliem Therapeutics and Seres Therapeutics
Given the investment horizon of 90 days Eliem Therapeutics is expected to under-perform the Seres Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Eliem Therapeutics is 1.66 times less risky than Seres Therapeutics. The stock trades about -0.29 of its potential returns per unit of risk. The Seres Therapeutics is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Seres Therapeutics on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Seres Therapeutics or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Eliem Therapeutics vs. Seres Therapeutics
Performance |
| Timeline |
| Eliem Therapeutics |
| Seres Therapeutics |
Eliem Therapeutics and Seres Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eliem Therapeutics and Seres Therapeutics
The main advantage of trading using opposite Eliem Therapeutics and Seres Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eliem Therapeutics position performs unexpectedly, Seres 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 Seres Therapeutics will offset losses from the drop in Seres Therapeutics' long position.| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
| Seres Therapeutics vs. Syros Pharmaceuticals | Seres Therapeutics vs. Iovance Biotherapeutics | Seres Therapeutics vs. Veracyte | Seres Therapeutics vs. Fate Therapeutics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |