Correlation Between Gamida Cell and Edgewise Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and Edgewise 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 Edgewise 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 Edgewise Therapeutics, you can compare the effects of market volatilities on Gamida Cell and Edgewise 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 Edgewise Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and Edgewise Therapeutics.
Diversification Opportunities for Gamida Cell and Edgewise Therapeutics
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gamida and Edgewise is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and Edgewise Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewise 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 Edgewise Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewise Therapeutics has no effect on the direction of Gamida Cell i.e., Gamida Cell and Edgewise Therapeutics go up and down completely randomly.
Pair Corralation between Gamida Cell and Edgewise Therapeutics
If you would invest 572.00 in Edgewise Therapeutics on September 4, 2024 and sell it today you would earn a total of 2,582 from holding Edgewise Therapeutics or generate 451.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Gamida Cell vs. Edgewise Therapeutics
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Edgewise Therapeutics |
Gamida Cell and Edgewise Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and Edgewise Therapeutics
The main advantage of trading using opposite Gamida Cell and Edgewise Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, Edgewise 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 Edgewise Therapeutics will offset losses from the drop in Edgewise Therapeutics' long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres Therapeutics |
| Edgewise Therapeutics vs. Candel Therapeutics | Edgewise Therapeutics vs. Cingulate Warrants | Edgewise Therapeutics vs. Unicycive Therapeutics | Edgewise Therapeutics vs. Cardio Diagnostics Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |