Correlation Between Estrella Immunopharma and Arcturus Therapeutics
Can any of the company-specific risk be diversified away by investing in both Estrella Immunopharma and Arcturus 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 Estrella Immunopharma and Arcturus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estrella Immunopharma and Arcturus Therapeutics Holdings, you can compare the effects of market volatilities on Estrella Immunopharma and Arcturus 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 Estrella Immunopharma with a short position of Arcturus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estrella Immunopharma and Arcturus Therapeutics.
Diversification Opportunities for Estrella Immunopharma and Arcturus Therapeutics
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Estrella and Arcturus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Arcturus Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcturus Therapeutics and Estrella Immunopharma 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 Estrella Immunopharma are associated (or correlated) with Arcturus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcturus Therapeutics has no effect on the direction of Estrella Immunopharma i.e., Estrella Immunopharma and Arcturus Therapeutics go up and down completely randomly.
Pair Corralation between Estrella Immunopharma and Arcturus Therapeutics
Assuming the 90 days horizon Estrella Immunopharma is expected to generate 0.11 times more return on investment than Arcturus Therapeutics. However, Estrella Immunopharma is 9.14 times less risky than Arcturus Therapeutics. It trades about -0.43 of its potential returns per unit of risk. Arcturus Therapeutics Holdings is currently generating about -0.05 per unit of risk. If you would invest 9.19 in Estrella Immunopharma on August 30, 2024 and sell it today you would lose (0.09) from holding Estrella Immunopharma or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 17.39% |
| Values | Daily Returns |
Estrella Immunopharma vs. Arcturus Therapeutics Holdings
Performance |
| Timeline |
| Estrella Immunopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Arcturus Therapeutics |
Estrella Immunopharma and Arcturus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estrella Immunopharma and Arcturus Therapeutics
The main advantage of trading using opposite Estrella Immunopharma and Arcturus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estrella Immunopharma position performs unexpectedly, Arcturus 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 Arcturus Therapeutics will offset losses from the drop in Arcturus Therapeutics' long position.| Estrella Immunopharma vs. Ikena Oncology | Estrella Immunopharma vs. Eliem Therapeutics | Estrella Immunopharma vs. HCW Biologics | Estrella Immunopharma vs. RenovoRx |
| Arcturus Therapeutics vs. 89bio Inc | Arcturus Therapeutics vs. Madrigal Pharmaceuticals | Arcturus Therapeutics vs. Pliant Therapeutics | Arcturus Therapeutics vs. Arcellx |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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