Correlation Between Equillium and GRI Bio
Can any of the company-specific risk be diversified away by investing in both Equillium and GRI Bio 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 Equillium and GRI Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and GRI Bio, you can compare the effects of market volatilities on Equillium and GRI Bio 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 Equillium with a short position of GRI Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and GRI Bio.
Diversification Opportunities for Equillium and GRI Bio
Excellent diversification
The 3 months correlation between Equillium and GRI is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and GRI Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRI Bio and Equillium 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 Equillium are associated (or correlated) with GRI Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRI Bio has no effect on the direction of Equillium i.e., Equillium and GRI Bio go up and down completely randomly.
Pair Corralation between Equillium and GRI Bio
Allowing for the 90-day total investment horizon Equillium is expected to generate 1.33 times more return on investment than GRI Bio. However, Equillium is 1.33 times more volatile than GRI Bio. It trades about 0.09 of its potential returns per unit of risk. GRI Bio is currently generating about -0.15 per unit of risk. If you would invest 70.00 in Equillium on November 28, 2024 and sell it today you would earn a total of 7.00 from holding Equillium or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. GRI Bio
Performance |
| Timeline |
| Equillium |
| GRI Bio |
Equillium and GRI Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and GRI Bio
The main advantage of trading using opposite Equillium and GRI Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, GRI Bio 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 GRI Bio will offset losses from the drop in GRI Bio's long position.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
| GRI Bio vs. Werewolf Therapeutics | GRI Bio vs. Edgewise Therapeutics | GRI Bio vs. Celcuity LLC | GRI Bio vs. C4 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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