Correlation Between Gracell Biotechnologies and FIXX Old
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies and FIXX Old 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 FIXX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gracell Biotechnologies and FIXX Old, you can compare the effects of market volatilities on Gracell Biotechnologies and FIXX Old 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 FIXX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and FIXX Old.
Diversification Opportunities for Gracell Biotechnologies and FIXX Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gracell and FIXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies and FIXX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIXX Old 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 FIXX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIXX Old has no effect on the direction of Gracell Biotechnologies i.e., Gracell Biotechnologies and FIXX Old go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies and FIXX Old
If you would invest (100.00) in FIXX Old on November 29, 2024 and sell it today you would earn a total of 100.00 from holding FIXX Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gracell Biotechnologies vs. FIXX Old
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| FIXX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Gracell Biotechnologies and FIXX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and FIXX Old
The main advantage of trading using opposite Gracell Biotechnologies and FIXX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies position performs unexpectedly, FIXX Old 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 FIXX Old will offset losses from the drop in FIXX Old's long position.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| FIXX Old vs. Passage Bio | FIXX Old vs. Stoke Therapeutics | FIXX Old vs. Adaptimmune Therapeutics Plc | FIXX Old vs. Black Diamond 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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