Correlation Between Galera Therapeutics and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics and Hookipa Pharma 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 Hookipa Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Hookipa Pharma, you can compare the effects of market volatilities on Galera Therapeutics and Hookipa Pharma 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 Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Hookipa Pharma.
Diversification Opportunities for Galera Therapeutics and Hookipa Pharma
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galera and Hookipa is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa Pharma 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 Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of Galera Therapeutics i.e., Galera Therapeutics and Hookipa Pharma go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Hookipa Pharma
Given the investment horizon of 90 days Galera Therapeutics is expected to generate 0.61 times more return on investment than Hookipa Pharma. However, Galera Therapeutics is 1.63 times less risky than Hookipa Pharma. It trades about 0.02 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.02 per unit of risk. If you would invest 255.00 in Galera Therapeutics on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Galera Therapeutics or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 18.8% |
| Values | Daily Returns |
Galera Therapeutics vs. Hookipa Pharma
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hookipa Pharma |
Galera Therapeutics and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Hookipa Pharma
The main advantage of trading using opposite Galera Therapeutics and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics position performs unexpectedly, Hookipa Pharma 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| Galera Therapeutics vs. Mereo BioPharma Group | Galera Therapeutics vs. Terns Pharmaceuticals | Galera Therapeutics vs. PDS Biotechnology Corp | Galera Therapeutics vs. Inozyme Pharma |
| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
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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