Correlation Between Galera Therapeutics and Nuvation Bio
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics and Nuvation Bio 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 Nuvation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Nuvation Bio, you can compare the effects of market volatilities on Galera Therapeutics and Nuvation Bio 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 Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Nuvation Bio.
Diversification Opportunities for Galera Therapeutics and Nuvation Bio
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galera and Nuvation is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio 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 Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Galera Therapeutics i.e., Galera Therapeutics and Nuvation Bio go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Nuvation Bio
If you would invest 235.00 in Nuvation Bio on August 29, 2024 and sell it today you would earn a total of 54.00 from holding Nuvation Bio or generate 22.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Galera Therapeutics vs. Nuvation Bio
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuvation Bio |
Galera Therapeutics and Nuvation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Nuvation Bio
The main advantage of trading using opposite Galera Therapeutics and Nuvation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics position performs unexpectedly, Nuvation Bio 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 Nuvation Bio will offset losses from the drop in Nuvation Bio'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 |
| Nuvation Bio vs. Assembly Biosciences | Nuvation Bio vs. Instil Bio | Nuvation Bio vs. Achilles Therapeutics PLC | Nuvation Bio vs. NextCure |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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