Correlation Between Graphite Bio and Molecular Partners
Can any of the company-specific risk be diversified away by investing in both Graphite Bio and Molecular Partners 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 Graphite Bio and Molecular Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphite Bio and Molecular Partners AG, you can compare the effects of market volatilities on Graphite Bio and Molecular Partners 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 Graphite Bio with a short position of Molecular Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite Bio and Molecular Partners.
Diversification Opportunities for Graphite Bio and Molecular Partners
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphite and Molecular is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Graphite Bio and Molecular Partners AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Partners and Graphite Bio 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 Graphite Bio are associated (or correlated) with Molecular Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Partners has no effect on the direction of Graphite Bio i.e., Graphite Bio and Molecular Partners go up and down completely randomly.
Pair Corralation between Graphite Bio and Molecular Partners
Given the investment horizon of 90 days Graphite Bio is expected to under-perform the Molecular Partners. But the stock apears to be less risky and, when comparing its historical volatility, Graphite Bio is 2.49 times less risky than Molecular Partners. The stock trades about -0.07 of its potential returns per unit of risk. The Molecular Partners AG is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Molecular Partners AG on September 1, 2024 and sell it today you would lose (102.00) from holding Molecular Partners AG or give up 14.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Graphite Bio vs. Molecular Partners AG
Performance |
| Timeline |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Molecular Partners |
Graphite Bio and Molecular Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite Bio and Molecular Partners
The main advantage of trading using opposite Graphite Bio and Molecular Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite Bio position performs unexpectedly, Molecular Partners 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 Molecular Partners will offset losses from the drop in Molecular Partners' long position.| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
| Molecular Partners vs. Mineralys Therapeutics, Common | Molecular Partners vs. AN2 Therapeutics | Molecular Partners vs. Pharvaris BV | Molecular Partners vs. PepGen |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |