Correlation Between Freeline Therapeutics and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both Freeline Therapeutics and Fortress Biotech 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 Fortress Biotech 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 Fortress Biotech, you can compare the effects of market volatilities on Freeline Therapeutics and Fortress Biotech 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freeline Therapeutics and Fortress Biotech.
Diversification Opportunities for Freeline Therapeutics and Fortress Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freeline and Fortress is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freeline Therapeutics Holdings and Fortress Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech has no effect on the direction of Freeline Therapeutics i.e., Freeline Therapeutics and Fortress Biotech go up and down completely randomly.
Pair Corralation between Freeline Therapeutics and Fortress Biotech
If you would invest (100.00) in Freeline Therapeutics Holdings on November 30, 2024 and sell it today you would earn a total of 100.00 from holding Freeline Therapeutics Holdings or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Freeline Therapeutics Holdings vs. Fortress Biotech
Performance |
Timeline |
Freeline Therapeutics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fortress Biotech |
Freeline Therapeutics and Fortress Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freeline Therapeutics and Fortress Biotech
The main advantage of trading using opposite Freeline Therapeutics and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freeline Therapeutics position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.Freeline Therapeutics vs. Cns Pharmaceuticals | ||
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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