Correlation Between Gamida Cell and Checkpoint Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and Checkpoint 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 Gamida Cell and Checkpoint Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and Checkpoint Therapeutics, you can compare the effects of market volatilities on Gamida Cell and Checkpoint 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 Gamida Cell with a short position of Checkpoint Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and Checkpoint Therapeutics.
Diversification Opportunities for Gamida Cell and Checkpoint Therapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamida and Checkpoint is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and Checkpoint Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Checkpoint Therapeutics and Gamida Cell 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 Gamida Cell are associated (or correlated) with Checkpoint Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Checkpoint Therapeutics has no effect on the direction of Gamida Cell i.e., Gamida Cell and Checkpoint Therapeutics go up and down completely randomly.
Pair Corralation between Gamida Cell and Checkpoint Therapeutics
Given the investment horizon of 90 days Gamida Cell is expected to generate 1.37 times more return on investment than Checkpoint Therapeutics. However, Gamida Cell is 1.37 times more volatile than Checkpoint Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Checkpoint Therapeutics is currently generating about 0.04 per unit of risk. If you would invest 128.00 in Gamida Cell on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Gamida Cell or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.31% |
| Values | Daily Returns |
Gamida Cell vs. Checkpoint Therapeutics
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Checkpoint Therapeutics |
Gamida Cell and Checkpoint Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and Checkpoint Therapeutics
The main advantage of trading using opposite Gamida Cell and Checkpoint Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, Checkpoint 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 Checkpoint Therapeutics will offset losses from the drop in Checkpoint Therapeutics' long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| Checkpoint Therapeutics vs. Mustang Bio | Checkpoint Therapeutics vs. Reviva Pharmaceuticals Holdings | Checkpoint Therapeutics vs. Fortress Biotech Pref | Checkpoint Therapeutics vs. Kodiak Sciences |
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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