Correlation Between Galera Therapeutics and Icosavax
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics and Icosavax 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 Icosavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Icosavax, you can compare the effects of market volatilities on Galera Therapeutics and Icosavax 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 Icosavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Icosavax.
Diversification Opportunities for Galera Therapeutics and Icosavax
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Galera and Icosavax is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Icosavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icosavax 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 Icosavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icosavax has no effect on the direction of Galera Therapeutics i.e., Galera Therapeutics and Icosavax go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Icosavax
If you would invest 902.00 in Icosavax on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Icosavax or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galera Therapeutics vs. Icosavax
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Galera Therapeutics and Icosavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Icosavax
The main advantage of trading using opposite Galera Therapeutics and Icosavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics position performs unexpectedly, Icosavax 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 Icosavax will offset losses from the drop in Icosavax'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 |
| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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