Correlation Between Hookipa Pharma and Chimerix
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma and Chimerix 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 Hookipa Pharma and Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and Chimerix, you can compare the effects of market volatilities on Hookipa Pharma and Chimerix 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 Hookipa Pharma with a short position of Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and Chimerix.
Diversification Opportunities for Hookipa Pharma and Chimerix
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hookipa and Chimerix is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix and Hookipa Pharma 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 Hookipa Pharma are associated (or correlated) with Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and Chimerix go up and down completely randomly.
Pair Corralation between Hookipa Pharma and Chimerix
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Chimerix. In addition to that, Hookipa Pharma is 1.77 times more volatile than Chimerix. It trades about -0.03 of its total potential returns per unit of risk. Chimerix is currently generating about 0.01 per unit of volatility. If you would invest 97.00 in Chimerix on August 25, 2024 and sell it today you would lose (7.00) from holding Chimerix or give up 7.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Hookipa Pharma vs. Chimerix
Performance |
| Timeline |
| Hookipa Pharma |
| Chimerix |
Hookipa Pharma and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and Chimerix
The main advantage of trading using opposite Hookipa Pharma and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
| Chimerix vs. Lyra Therapeutics | Chimerix vs. Hookipa Pharma | Chimerix vs. SAB Biotherapeutics | Chimerix vs. Cadrenal Therapeutics, Common |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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