Correlation Between Homology Medicines and Adaptimmune Therapeutics
Can any of the company-specific risk be diversified away by investing in both Homology Medicines and Adaptimmune 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 Homology Medicines and Adaptimmune Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Homology Medicines and Adaptimmune Therapeutics Plc, you can compare the effects of market volatilities on Homology Medicines and Adaptimmune 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 Homology Medicines with a short position of Adaptimmune Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Homology Medicines and Adaptimmune Therapeutics.
Diversification Opportunities for Homology Medicines and Adaptimmune Therapeutics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Homology and Adaptimmune is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Homology Medicines and Adaptimmune Therapeutics Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adaptimmune Therapeutics and Homology Medicines 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 Homology Medicines are associated (or correlated) with Adaptimmune Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adaptimmune Therapeutics has no effect on the direction of Homology Medicines i.e., Homology Medicines and Adaptimmune Therapeutics go up and down completely randomly.
Pair Corralation between Homology Medicines and Adaptimmune Therapeutics
If you would invest 70.00 in Adaptimmune Therapeutics Plc on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Adaptimmune Therapeutics Plc or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Homology Medicines vs. Adaptimmune Therapeutics Plc
Performance |
| Timeline |
| Homology Medicines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adaptimmune Therapeutics |
Homology Medicines and Adaptimmune Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Homology Medicines and Adaptimmune Therapeutics
The main advantage of trading using opposite Homology Medicines and Adaptimmune Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Homology Medicines position performs unexpectedly, Adaptimmune 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 Adaptimmune Therapeutics will offset losses from the drop in Adaptimmune Therapeutics' long position.| Homology Medicines vs. Passage Bio | Homology Medicines vs. Stoke Therapeutics | Homology Medicines vs. Adaptimmune Therapeutics Plc | Homology Medicines vs. Black Diamond 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |