Correlation Between Frequency Therapeutics and Adverum Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Frequency Therapeutics and Adverum Biotechnologies 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 Frequency Therapeutics and Adverum Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Therapeutics and Adverum Biotechnologies, you can compare the effects of market volatilities on Frequency Therapeutics and Adverum Biotechnologies 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 Frequency Therapeutics with a short position of Adverum Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Therapeutics and Adverum Biotechnologies.
Diversification Opportunities for Frequency Therapeutics and Adverum Biotechnologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Frequency and Adverum is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Therapeutics and Adverum Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adverum Biotechnologies and Frequency 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 Frequency Therapeutics are associated (or correlated) with Adverum Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adverum Biotechnologies has no effect on the direction of Frequency Therapeutics i.e., Frequency Therapeutics and Adverum Biotechnologies go up and down completely randomly.
Pair Corralation between Frequency Therapeutics and Adverum Biotechnologies
If you would invest 52.00 in Frequency Therapeutics on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Frequency Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Frequency Therapeutics vs. Adverum Biotechnologies
Performance |
| Timeline |
| Frequency Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Adverum Biotechnologies |
Frequency Therapeutics and Adverum Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Therapeutics and Adverum Biotechnologies
The main advantage of trading using opposite Frequency Therapeutics and Adverum Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Therapeutics position performs unexpectedly, Adverum Biotechnologies 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 Adverum Biotechnologies will offset losses from the drop in Adverum Biotechnologies' long position.| Frequency Therapeutics vs. Lineage Cell Therapeutics | Frequency Therapeutics vs. MAIA Biotechnology | Frequency Therapeutics vs. Armata Pharmaceuticals | Frequency Therapeutics vs. Portage Biotech |
| Adverum Biotechnologies vs. Uniqure NV | Adverum Biotechnologies vs. Rocket Pharmaceuticals | Adverum Biotechnologies vs. Rhythm Pharmaceuticals | Adverum Biotechnologies vs. Solid Biosciences LLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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