Correlation Between Geron and Amplia Therapeutics
Can any of the company-specific risk be diversified away by investing in both Geron and Amplia 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 Geron and Amplia Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Amplia Therapeutics Limited, you can compare the effects of market volatilities on Geron and Amplia 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 Geron with a short position of Amplia Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Amplia Therapeutics.
Diversification Opportunities for Geron and Amplia Therapeutics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Geron and Amplia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Amplia Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplia Therapeutics 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 Amplia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplia Therapeutics has no effect on the direction of Geron i.e., Geron and Amplia Therapeutics go up and down completely randomly.
Pair Corralation between Geron and Amplia Therapeutics
Given the investment horizon of 90 days Geron is expected to generate 6.47 times less return on investment than Amplia Therapeutics. But when comparing it to its historical volatility, Geron is 3.25 times less risky than Amplia Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Amplia Therapeutics Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Amplia Therapeutics Limited on September 2, 2024 and sell it today you would earn a total of 1.80 from holding Amplia Therapeutics Limited or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. Amplia Therapeutics Limited
Performance |
| Timeline |
| Geron |
| Amplia Therapeutics |
Geron and Amplia Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Amplia Therapeutics
The main advantage of trading using opposite Geron and Amplia Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Amplia 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 Amplia Therapeutics will offset losses from the drop in Amplia Therapeutics' long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Amplia Therapeutics vs. Rigel Pharmaceuticals | Amplia Therapeutics vs. Geron | Amplia Therapeutics vs. Verastem | Amplia Therapeutics vs. Immutep Ltd ADR |
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.
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