Correlation Between Fate Therapeutics and Replimune
Can any of the company-specific risk be diversified away by investing in both Fate Therapeutics and Replimune 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 Fate Therapeutics and Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fate Therapeutics and Replimune Group, you can compare the effects of market volatilities on Fate Therapeutics and Replimune 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 Fate Therapeutics with a short position of Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fate Therapeutics and Replimune.
Diversification Opportunities for Fate Therapeutics and Replimune
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fate and Replimune is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fate Therapeutics and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group and Fate 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 Fate Therapeutics are associated (or correlated) with Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of Fate Therapeutics i.e., Fate Therapeutics and Replimune go up and down completely randomly.
Pair Corralation between Fate Therapeutics and Replimune
Given the investment horizon of 90 days Fate Therapeutics is expected to under-perform the Replimune. In addition to that, Fate Therapeutics is 1.45 times more volatile than Replimune Group. It trades about -0.32 of its total potential returns per unit of risk. Replimune Group is currently generating about -0.18 per unit of volatility. If you would invest 1,248 in Replimune Group on October 15, 2024 and sell it today you would lose (142.00) from holding Replimune Group or give up 11.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fate Therapeutics vs. Replimune Group
Performance |
| Timeline |
| Fate Therapeutics |
| Replimune Group |
Fate Therapeutics and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fate Therapeutics and Replimune
The main advantage of trading using opposite Fate Therapeutics and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fate Therapeutics position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| Fate Therapeutics vs. Atara Biotherapeutics | Fate Therapeutics vs. Sana Biotechnology | Fate Therapeutics vs. Caribou Biosciences | Fate Therapeutics vs. Arcus Biosciences |
| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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