Correlation Between Equillium and Trevena
Can any of the company-specific risk be diversified away by investing in both Equillium and Trevena 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 Trevena into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and Trevena, you can compare the effects of market volatilities on Equillium and Trevena 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 Trevena. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and Trevena.
Diversification Opportunities for Equillium and Trevena
Very weak diversification
The 3 months correlation between Equillium and Trevena is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Trevena in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trevena 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 Trevena. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trevena has no effect on the direction of Equillium i.e., Equillium and Trevena go up and down completely randomly.
Pair Corralation between Equillium and Trevena
If you would invest 60.00 in Equillium on October 22, 2024 and sell it today you would earn a total of 4.00 from holding Equillium or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Equillium vs. Trevena
Performance |
| Timeline |
| Equillium |
| Trevena |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Equillium and Trevena Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and Trevena
The main advantage of trading using opposite Equillium and Trevena positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, Trevena 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 Trevena will offset losses from the drop in Trevena's long position.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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