Correlation Between Edgewise Therapeutics and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Edgewise Therapeutics and Stoke 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 Edgewise Therapeutics and Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewise Therapeutics and Stoke Therapeutics, you can compare the effects of market volatilities on Edgewise Therapeutics and Stoke 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 Edgewise Therapeutics with a short position of Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewise Therapeutics and Stoke Therapeutics.
Diversification Opportunities for Edgewise Therapeutics and Stoke Therapeutics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Edgewise and Stoke is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Edgewise Therapeutics and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Edgewise Therapeutics i.e., Edgewise Therapeutics and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Edgewise Therapeutics and Stoke Therapeutics
Given the investment horizon of 90 days Edgewise Therapeutics is expected to generate 0.7 times more return on investment than Stoke Therapeutics. However, Edgewise Therapeutics is 1.42 times less risky than Stoke Therapeutics. It trades about -0.12 of its potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.11 per unit of risk. If you would invest 3,442 in Edgewise Therapeutics on August 23, 2024 and sell it today you would lose (244.00) from holding Edgewise Therapeutics or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewise Therapeutics vs. Stoke Therapeutics
Performance |
| Timeline |
| Edgewise Therapeutics |
| Stoke Therapeutics |
Edgewise Therapeutics and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewise Therapeutics and Stoke Therapeutics
The main advantage of trading using opposite Edgewise Therapeutics and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewise Therapeutics position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Edgewise Therapeutics vs. ZyVersa Therapeutics | Edgewise Therapeutics vs. Sonnet Biotherapeutics Holdings | Edgewise Therapeutics vs. Zura Bio Limited | Edgewise Therapeutics vs. Phio Pharmaceuticals Corp |
| Stoke Therapeutics vs. ZyVersa Therapeutics | Stoke Therapeutics vs. Sonnet Biotherapeutics Holdings | Stoke Therapeutics vs. Zura Bio Limited | Stoke Therapeutics vs. Phio Pharmaceuticals Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |