Correlation Between Gracell Biotechnologies and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies and Stoke 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 Stoke 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 Stoke Therapeutics, you can compare the effects of market volatilities on Gracell Biotechnologies and Stoke 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 Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and Stoke Therapeutics.
Diversification Opportunities for Gracell Biotechnologies and Stoke Therapeutics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gracell and Stoke is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Gracell Biotechnologies i.e., Gracell Biotechnologies and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies and Stoke Therapeutics
If you would invest 402.00 in Gracell Biotechnologies on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Gracell Biotechnologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gracell Biotechnologies vs. Stoke Therapeutics
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stoke Therapeutics |
Gracell Biotechnologies and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and Stoke Therapeutics
The main advantage of trading using opposite Gracell Biotechnologies and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| Stoke Therapeutics vs. Bright Minds Biosciences | Stoke Therapeutics vs. HP Inc | Stoke Therapeutics vs. Intel | Stoke Therapeutics vs. Chevron Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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