Correlation Between Fortress Biotech and Freeline Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Freeline 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 Freeline 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 Freeline Therapeutics Holdings, you can compare the effects of market volatilities on Fortress Biotech and Freeline 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 Freeline Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Freeline Therapeutics.
Diversification Opportunities for Fortress Biotech and Freeline Therapeutics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fortress and Freeline is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech and Freeline Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeline 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 Freeline Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeline Therapeutics has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Freeline Therapeutics go up and down completely randomly.
Pair Corralation between Fortress Biotech and Freeline Therapeutics
If you would invest 431.00 in Freeline Therapeutics Holdings on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Freeline Therapeutics Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Fortress Biotech vs. Freeline Therapeutics Holdings
Performance |
| Timeline |
| Fortress Biotech |
| Freeline Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and Freeline Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Freeline Therapeutics
The main advantage of trading using opposite Fortress Biotech and Freeline Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Freeline 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 Freeline Therapeutics will offset losses from the drop in Freeline 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 |
| Freeline Therapeutics vs. Cns Pharmaceuticals | Freeline Therapeutics vs. ZyVersa Therapeutics | Freeline Therapeutics vs. Immix Biopharma | Freeline Therapeutics vs. Hepion Pharmaceuticals |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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