Correlation Between Geron and Ascletis Pharma
Can any of the company-specific risk be diversified away by investing in both Geron and Ascletis Pharma 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 Geron and Ascletis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Ascletis Pharma, you can compare the effects of market volatilities on Geron and Ascletis Pharma 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 Geron with a short position of Ascletis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Ascletis Pharma.
Diversification Opportunities for Geron and Ascletis Pharma
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geron and Ascletis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Ascletis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascletis Pharma and Geron 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 Geron are associated (or correlated) with Ascletis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascletis Pharma has no effect on the direction of Geron i.e., Geron and Ascletis Pharma go up and down completely randomly.
Pair Corralation between Geron and Ascletis Pharma
Given the investment horizon of 90 days Geron is expected to generate 1.6 times less return on investment than Ascletis Pharma. In addition to that, Geron is 1.22 times more volatile than Ascletis Pharma. It trades about 0.03 of its total potential returns per unit of risk. Ascletis Pharma is currently generating about 0.07 per unit of volatility. If you would invest 15.00 in Ascletis Pharma on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Ascletis Pharma or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Geron vs. Ascletis Pharma
Performance |
| Timeline |
| Geron |
| Ascletis Pharma |
Geron and Ascletis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Ascletis Pharma
The main advantage of trading using opposite Geron and Ascletis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Ascletis Pharma 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 Ascletis Pharma will offset losses from the drop in Ascletis Pharma's long position.| Geron vs. Tff Pharmaceuticals | Geron vs. Eliem Therapeutics | Geron vs. Inhibrx | Geron vs. Enliven Therapeutics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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