Correlation Between G1 Therapeutics and Atara Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both G1 Therapeutics and Atara Biotherapeutics 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 G1 Therapeutics and Atara Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G1 Therapeutics and Atara Biotherapeutics, you can compare the effects of market volatilities on G1 Therapeutics and Atara Biotherapeutics 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 G1 Therapeutics with a short position of Atara Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of G1 Therapeutics and Atara Biotherapeutics.
Diversification Opportunities for G1 Therapeutics and Atara Biotherapeutics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GTHX and Atara is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding G1 Therapeutics and Atara Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atara Biotherapeutics and G1 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 G1 Therapeutics are associated (or correlated) with Atara Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atara Biotherapeutics has no effect on the direction of G1 Therapeutics i.e., G1 Therapeutics and Atara Biotherapeutics go up and down completely randomly.
Pair Corralation between G1 Therapeutics and Atara Biotherapeutics
Given the investment horizon of 90 days G1 Therapeutics is expected to generate 1.11 times more return on investment than Atara Biotherapeutics. However, G1 Therapeutics is 1.11 times more volatile than Atara Biotherapeutics. It trades about 0.09 of its potential returns per unit of risk. Atara Biotherapeutics is currently generating about 0.03 per unit of risk. If you would invest 343.00 in G1 Therapeutics on September 3, 2024 and sell it today you would earn a total of 372.00 from holding G1 Therapeutics or generate 108.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.19% |
| Values | Daily Returns |
G1 Therapeutics vs. Atara Biotherapeutics
Performance |
| Timeline |
| G1 Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Atara Biotherapeutics |
G1 Therapeutics and Atara Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G1 Therapeutics and Atara Biotherapeutics
The main advantage of trading using opposite G1 Therapeutics and Atara Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G1 Therapeutics position performs unexpectedly, Atara Biotherapeutics 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 Atara Biotherapeutics will offset losses from the drop in Atara Biotherapeutics' long position.| G1 Therapeutics vs. Allogene Therapeutics | G1 Therapeutics vs. Heron Therapeuti | G1 Therapeutics vs. Annexon | G1 Therapeutics vs. Sangamo Therapeutics |
| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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