Correlation Between Freeline Therapeutics and Capricor Therapeutics
Can any of the company-specific risk be diversified away by investing in both Freeline Therapeutics and Capricor 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 Freeline Therapeutics and Capricor Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freeline Therapeutics Holdings and Capricor Therapeutics, you can compare the effects of market volatilities on Freeline Therapeutics and Capricor 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 Freeline Therapeutics with a short position of Capricor Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeline Therapeutics and Capricor Therapeutics.
Diversification Opportunities for Freeline Therapeutics and Capricor Therapeutics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Freeline and Capricor is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Freeline Therapeutics Holdings and Capricor Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capricor Therapeutics and Freeline 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 Freeline Therapeutics Holdings are associated (or correlated) with Capricor Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capricor Therapeutics has no effect on the direction of Freeline Therapeutics i.e., Freeline Therapeutics and Capricor Therapeutics go up and down completely randomly.
Pair Corralation between Freeline Therapeutics and Capricor Therapeutics
If you would invest 1,307 in Capricor Therapeutics on October 21, 2024 and sell it today you would earn a total of 63.00 from holding Capricor Therapeutics or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Freeline Therapeutics Holdings vs. Capricor Therapeutics
Performance |
| Timeline |
| Freeline Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Capricor Therapeutics |
Freeline Therapeutics and Capricor Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freeline Therapeutics and Capricor Therapeutics
The main advantage of trading using opposite Freeline Therapeutics and Capricor Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeline Therapeutics position performs unexpectedly, Capricor 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 Capricor Therapeutics will offset losses from the drop in Capricor Therapeutics' long position.| Freeline Therapeutics vs. Cns Pharmaceuticals | Freeline Therapeutics vs. ZyVersa Therapeutics | Freeline Therapeutics vs. Immix Biopharma | Freeline Therapeutics vs. Hepion Pharmaceuticals |
| Capricor Therapeutics vs. Bio Path Holdings | Capricor Therapeutics vs. NextCure | Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. Akari Therapeutics PLC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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