Correlation Between Freeline Therapeutics and Clene
Can any of the company-specific risk be diversified away by investing in both Freeline Therapeutics and Clene 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 Clene 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 Clene Inc, you can compare the effects of market volatilities on Freeline Therapeutics and Clene 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 Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeline Therapeutics and Clene.
Diversification Opportunities for Freeline Therapeutics and Clene
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Freeline and Clene is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Freeline Therapeutics Holdings and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc 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 Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of Freeline Therapeutics i.e., Freeline Therapeutics and Clene go up and down completely randomly.
Pair Corralation between Freeline Therapeutics and Clene
Given the investment horizon of 90 days Freeline Therapeutics Holdings is expected to generate 2.04 times more return on investment than Clene. However, Freeline Therapeutics is 2.04 times more volatile than Clene Inc. It trades about 0.21 of its potential returns per unit of risk. Clene Inc is currently generating about -0.03 per unit of risk. If you would invest 224.00 in Freeline Therapeutics Holdings on August 31, 2024 and sell it today you would earn a total of 207.00 from holding Freeline Therapeutics Holdings or generate 92.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Freeline Therapeutics Holdings vs. Clene Inc
Performance |
| Timeline |
| Freeline Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Clene Inc |
Freeline Therapeutics and Clene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freeline Therapeutics and Clene
The main advantage of trading using opposite Freeline Therapeutics and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeline Therapeutics position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| Freeline Therapeutics vs. Cns Pharmaceuticals | Freeline Therapeutics vs. ZyVersa Therapeutics | Freeline Therapeutics vs. Immix Biopharma | Freeline Therapeutics vs. Hepion Pharmaceuticals |
| Clene vs. MediciNova | Clene vs. Eliem Therapeutics | Clene vs. Molecular Partners AG | Clene vs. Champions Oncology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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