Correlation Between Gamida Cell and Verastem
Can any of the company-specific risk be diversified away by investing in both Gamida Cell and Verastem 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 Verastem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and Verastem, you can compare the effects of market volatilities on Gamida Cell and Verastem 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 Verastem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and Verastem.
Diversification Opportunities for Gamida Cell and Verastem
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamida and Verastem is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and Verastem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verastem 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 Verastem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verastem has no effect on the direction of Gamida Cell i.e., Gamida Cell and Verastem go up and down completely randomly.
Pair Corralation between Gamida Cell and Verastem
If you would invest 392.00 in Verastem on September 2, 2024 and sell it today you would earn a total of 142.00 from holding Verastem or generate 36.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Gamida Cell vs. Verastem
Performance |
| Timeline |
| Gamida Cell |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Verastem |
Gamida Cell and Verastem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamida Cell and Verastem
The main advantage of trading using opposite Gamida Cell and Verastem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, Verastem 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 Verastem will offset losses from the drop in Verastem's long position.| Gamida Cell vs. BioLineRx | Gamida Cell vs. Ardelyx | Gamida Cell vs. Lexicon Pharmaceuticals | Gamida Cell vs. Seres 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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |