Correlation Between Galera Therapeutics and Surrozen
Can any of the company-specific risk be diversified away by investing in both Galera Therapeutics and Surrozen 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 Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galera Therapeutics and Surrozen, you can compare the effects of market volatilities on Galera Therapeutics and Surrozen 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 Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galera Therapeutics and Surrozen.
Diversification Opportunities for Galera Therapeutics and Surrozen
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galera and Surrozen is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Galera Therapeutics and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Galera Therapeutics i.e., Galera Therapeutics and Surrozen go up and down completely randomly.
Pair Corralation between Galera Therapeutics and Surrozen
Given the investment horizon of 90 days Galera Therapeutics is expected to generate 0.81 times more return on investment than Surrozen. However, Galera Therapeutics is 1.24 times less risky than Surrozen. It trades about 0.08 of its potential returns per unit of risk. Surrozen is currently generating about 0.04 per unit of risk. If you would invest 164.00 in Galera Therapeutics on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Galera Therapeutics or generate 57.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Galera Therapeutics vs. Surrozen
Performance |
| Timeline |
| Galera Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Surrozen |
Galera Therapeutics and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galera Therapeutics and Surrozen
The main advantage of trading using opposite Galera Therapeutics and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galera Therapeutics position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen'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 |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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