Correlation Between Haleon Plc and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Haleon Plc and Marker Therapeutics 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 Haleon Plc and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Marker Therapeutics, you can compare the effects of market volatilities on Haleon Plc and Marker Therapeutics 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 Haleon Plc with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Marker Therapeutics.
Diversification Opportunities for Haleon Plc and Marker Therapeutics
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Haleon and Marker is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Haleon Plc 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 Haleon plc are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Haleon Plc i.e., Haleon Plc and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Haleon Plc and Marker Therapeutics
Considering the 90-day investment horizon Haleon plc is expected to under-perform the Marker Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Haleon plc is 6.49 times less risky than Marker Therapeutics. The stock trades about -0.05 of its potential returns per unit of risk. The Marker Therapeutics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 352.00 in Marker Therapeutics on September 3, 2024 and sell it today you would lose (2.00) from holding Marker Therapeutics or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haleon plc vs. Marker Therapeutics
Performance |
| Timeline |
| Haleon plc |
| Marker Therapeutics |
Haleon Plc and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and Marker Therapeutics
The main advantage of trading using opposite Haleon Plc and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc position performs unexpectedly, Marker Therapeutics 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
| Marker Therapeutics vs. DiaMedica Therapeutics | Marker Therapeutics vs. Lyra Therapeutics | Marker Therapeutics vs. Centessa Pharmaceuticals PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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