Correlation Between Frequency Therapeutics and Olema Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Frequency Therapeutics and Olema Pharmaceuticals 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 Olema Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Therapeutics and Olema Pharmaceuticals, you can compare the effects of market volatilities on Frequency Therapeutics and Olema Pharmaceuticals 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 Olema Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Therapeutics and Olema Pharmaceuticals.
Diversification Opportunities for Frequency Therapeutics and Olema Pharmaceuticals
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Frequency and Olema is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Therapeutics and Olema Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olema Pharmaceuticals 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 Olema Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olema Pharmaceuticals has no effect on the direction of Frequency Therapeutics i.e., Frequency Therapeutics and Olema Pharmaceuticals go up and down completely randomly.
Pair Corralation between Frequency Therapeutics and Olema Pharmaceuticals
If you would invest 52.00 in Frequency Therapeutics on September 1, 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 | 4.76% |
| Values | Daily Returns |
Frequency Therapeutics vs. Olema Pharmaceuticals
Performance |
| Timeline |
| Frequency Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Olema Pharmaceuticals |
Frequency Therapeutics and Olema Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Therapeutics and Olema Pharmaceuticals
The main advantage of trading using opposite Frequency Therapeutics and Olema Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Therapeutics position performs unexpectedly, Olema Pharmaceuticals 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 Olema Pharmaceuticals will offset losses from the drop in Olema Pharmaceuticals' long position.| Frequency Therapeutics vs. Lineage Cell Therapeutics | Frequency Therapeutics vs. MAIA Biotechnology | Frequency Therapeutics vs. Armata Pharmaceuticals | Frequency Therapeutics vs. Portage Biotech |
| Olema Pharmaceuticals vs. Sana Biotechnology | Olema Pharmaceuticals vs. Cullinan Oncology LLC | Olema Pharmaceuticals vs. Zentalis Pharmaceuticals Llc | Olema Pharmaceuticals vs. Molecular Partners AG |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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