Correlation Between Eterna Therapeutics and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Eterna Therapeutics and Marker 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 Eterna Therapeutics and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eterna Therapeutics and Marker Therapeutics, you can compare the effects of market volatilities on Eterna Therapeutics and Marker 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 Eterna Therapeutics with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eterna Therapeutics and Marker Therapeutics.
Diversification Opportunities for Eterna Therapeutics and Marker Therapeutics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eterna and Marker is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eterna Therapeutics and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Eterna 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 Eterna Therapeutics are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Eterna Therapeutics i.e., Eterna Therapeutics and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Eterna Therapeutics and Marker Therapeutics
Given the investment horizon of 90 days Eterna Therapeutics is expected to under-perform the Marker Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Eterna Therapeutics is 1.04 times less risky than Marker Therapeutics. The stock trades about -0.08 of its potential returns per unit of risk. The Marker Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Marker Therapeutics on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Marker Therapeutics or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eterna Therapeutics vs. Marker Therapeutics
Performance |
| Timeline |
| Eterna Therapeutics |
| Marker Therapeutics |
Eterna Therapeutics and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eterna Therapeutics and Marker Therapeutics
The main advantage of trading using opposite Eterna Therapeutics and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eterna Therapeutics position performs unexpectedly, Marker 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| Eterna Therapeutics vs. Arcus Biosciences | Eterna Therapeutics vs. Cullinan Oncology LLC | Eterna Therapeutics vs. Annexon | Eterna Therapeutics vs. Structure Therapeutics American |
| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |