Correlation Between Fortress Biotech and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Eliem 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 Fortress Biotech and Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech and Eliem Therapeutics, you can compare the effects of market volatilities on Fortress Biotech and Eliem 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 Fortress Biotech with a short position of Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Eliem Therapeutics.
Diversification Opportunities for Fortress Biotech and Eliem Therapeutics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fortress and Eliem is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics and Fortress Biotech 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 Fortress Biotech are associated (or correlated) with Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between Fortress Biotech and Eliem Therapeutics
Given the investment horizon of 90 days Fortress Biotech is expected to generate 0.91 times more return on investment than Eliem Therapeutics. However, Fortress Biotech is 1.1 times less risky than Eliem Therapeutics. It trades about -0.07 of its potential returns per unit of risk. Eliem Therapeutics is currently generating about -0.29 per unit of risk. If you would invest 202.00 in Fortress Biotech on August 29, 2024 and sell it today you would lose (18.00) from holding Fortress Biotech or give up 8.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Fortress Biotech vs. Eliem Therapeutics
Performance |
| Timeline |
| Fortress Biotech |
| Eliem Therapeutics |
Fortress Biotech and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Eliem Therapeutics
The main advantage of trading using opposite Fortress Biotech and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Eliem 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Achilles Therapeutics PLC | Fortress Biotech vs. Aptose Biosciences | Fortress Biotech vs. Fortress Biotech Pref |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |