Correlation Between Edgewise Therapeutics and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both Edgewise Therapeutics and Cantaloupe 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 Edgewise Therapeutics and Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewise Therapeutics and Cantaloupe, you can compare the effects of market volatilities on Edgewise Therapeutics and Cantaloupe 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 Edgewise Therapeutics with a short position of Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewise Therapeutics and Cantaloupe.
Diversification Opportunities for Edgewise Therapeutics and Cantaloupe
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Edgewise and Cantaloupe is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Edgewise Therapeutics and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe and Edgewise 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 Edgewise Therapeutics are associated (or correlated) with Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of Edgewise Therapeutics i.e., Edgewise Therapeutics and Cantaloupe go up and down completely randomly.
Pair Corralation between Edgewise Therapeutics and Cantaloupe
Given the investment horizon of 90 days Edgewise Therapeutics is expected to generate 2.17 times more return on investment than Cantaloupe. However, Edgewise Therapeutics is 2.17 times more volatile than Cantaloupe. It trades about 0.1 of its potential returns per unit of risk. Cantaloupe is currently generating about 0.03 per unit of risk. If you would invest 734.00 in Edgewise Therapeutics on September 12, 2024 and sell it today you would earn a total of 2,212 from holding Edgewise Therapeutics or generate 301.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewise Therapeutics vs. Cantaloupe
Performance |
| Timeline |
| Edgewise Therapeutics |
| Cantaloupe |
Edgewise Therapeutics and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewise Therapeutics and Cantaloupe
The main advantage of trading using opposite Edgewise Therapeutics and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewise Therapeutics position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.| Edgewise Therapeutics vs. Century Therapeutics | Edgewise Therapeutics vs. C4 Therapeutics | Edgewise Therapeutics vs. Mineralys Therapeutics, Common | Edgewise Therapeutics vs. Cullinan Oncology LLC |
| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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