Correlation Between GH Research and Structure Therapeutics
Can any of the company-specific risk be diversified away by investing in both GH Research and Structure 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 GH Research and Structure Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GH Research PLC and Structure Therapeutics American, you can compare the effects of market volatilities on GH Research and Structure 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 GH Research with a short position of Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GH Research and Structure Therapeutics.
Diversification Opportunities for GH Research and Structure Therapeutics
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GHRS and Structure is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GH Research PLC and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure Therapeutics and GH Research 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 GH Research PLC are associated (or correlated) with Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of GH Research i.e., GH Research and Structure Therapeutics go up and down completely randomly.
Pair Corralation between GH Research and Structure Therapeutics
Given the investment horizon of 90 days GH Research PLC is expected to generate 1.15 times more return on investment than Structure Therapeutics. However, GH Research is 1.15 times more volatile than Structure Therapeutics American. It trades about 0.12 of its potential returns per unit of risk. Structure Therapeutics American is currently generating about -0.21 per unit of risk. If you would invest 810.00 in GH Research PLC on September 1, 2024 and sell it today you would earn a total of 83.00 from holding GH Research PLC or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GH Research PLC vs. Structure Therapeutics America
Performance |
| Timeline |
| GH Research PLC |
| Structure Therapeutics |
GH Research and Structure Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GH Research and Structure Therapeutics
The main advantage of trading using opposite GH Research and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GH Research position performs unexpectedly, Structure 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
| Structure Therapeutics vs. Day One Biopharmaceuticals | Structure Therapeutics vs. X4 Pharmaceuticals | Structure Therapeutics vs. Inozyme Pharma | Structure Therapeutics vs. Acumen Pharmaceuticals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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