Correlation Between Generation Bio and Chimerix
Can any of the company-specific risk be diversified away by investing in both Generation Bio and Chimerix 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 Generation Bio and Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Bio Co and Chimerix, you can compare the effects of market volatilities on Generation Bio and Chimerix 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 Generation Bio with a short position of Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Bio and Chimerix.
Diversification Opportunities for Generation Bio and Chimerix
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Generation and Chimerix is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Generation Bio Co and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix and Generation Bio 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 Generation Bio Co are associated (or correlated) with Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Generation Bio i.e., Generation Bio and Chimerix go up and down completely randomly.
Pair Corralation between Generation Bio and Chimerix
Given the investment horizon of 90 days Generation Bio Co is expected to under-perform the Chimerix. In addition to that, Generation Bio is 1.86 times more volatile than Chimerix. It trades about -0.05 of its total potential returns per unit of risk. Chimerix is currently generating about -0.01 per unit of volatility. If you would invest 100.00 in Chimerix on September 3, 2024 and sell it today you would lose (12.00) from holding Chimerix or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Bio Co vs. Chimerix
Performance |
| Timeline |
| Generation Bio |
| Chimerix |
Generation Bio and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Bio and Chimerix
The main advantage of trading using opposite Generation Bio and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Bio position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |