Correlation Between Gracell Biotechnologies and Enliven Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies and Enliven 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 Gracell Biotechnologies and Enliven Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gracell Biotechnologies and Enliven Therapeutics, you can compare the effects of market volatilities on Gracell Biotechnologies and Enliven 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 Gracell Biotechnologies with a short position of Enliven Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and Enliven Therapeutics.
Diversification Opportunities for Gracell Biotechnologies and Enliven Therapeutics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gracell and Enliven is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven Therapeutics and Gracell Biotechnologies 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 Gracell Biotechnologies are associated (or correlated) with Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Gracell Biotechnologies i.e., Gracell Biotechnologies and Enliven Therapeutics go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies and Enliven Therapeutics
If you would invest 2,413 in Enliven Therapeutics on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Enliven Therapeutics or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.38% |
| Values | Daily Returns |
Gracell Biotechnologies vs. Enliven Therapeutics
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enliven Therapeutics |
Gracell Biotechnologies and Enliven Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and Enliven Therapeutics
The main advantage of trading using opposite Gracell Biotechnologies and Enliven Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies position performs unexpectedly, Enliven 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 Enliven Therapeutics will offset losses from the drop in Enliven Therapeutics' long position.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| Enliven Therapeutics vs. Capricor Therapeutics | Enliven Therapeutics vs. Soleno Therapeutics | Enliven Therapeutics vs. Bio Path Holdings | Enliven Therapeutics vs. Moleculin Biotech |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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