Correlation Between Galera Therapeutics and Gain Therapeutics
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics and Gain 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 Galera Therapeutics and Gain Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Gain Therapeutics, you can compare the effects of market volatilities on Galera Therapeutics and Gain 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 Galera Therapeutics with a short position of Gain Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Gain Therapeutics.
Diversification Opportunities for Galera Therapeutics and Gain Therapeutics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galera and Gain is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Gain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gain Therapeutics and Galera Therapeutics 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 Galera Therapeutics are associated (or correlated) with Gain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gain Therapeutics has no effect on the direction of Galera Therapeutics i.e., Galera Therapeutics and Gain Therapeutics go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Gain Therapeutics
If you would invest 258.00 in Galera Therapeutics on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Galera Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Galera Therapeutics vs. Gain Therapeutics
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gain Therapeutics |
Galera Therapeutics and Gain Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Gain Therapeutics
The main advantage of trading using opposite Galera Therapeutics and Gain Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics position performs unexpectedly, Gain 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 Gain Therapeutics will offset losses from the drop in Gain Therapeutics' long position.| Galera Therapeutics vs. Mereo BioPharma Group | Galera Therapeutics vs. Terns Pharmaceuticals | Galera Therapeutics vs. PDS Biotechnology Corp | Galera Therapeutics vs. Inozyme Pharma |
| Gain Therapeutics vs. Biovie Inc | Gain Therapeutics vs. In8bio Inc | Gain Therapeutics vs. NewAmsterdam Pharma | Gain Therapeutics vs. Cue Biopharma |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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