Correlation Between Hookipa Pharma and CSL
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma and CSL 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 CSL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and CSL, you can compare the effects of market volatilities on Hookipa Pharma and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and CSL.
Diversification Opportunities for Hookipa Pharma and CSL
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hookipa and CSL is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and CSL go up and down completely randomly.
Pair Corralation between Hookipa Pharma and CSL
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the CSL. In addition to that, Hookipa Pharma is 3.89 times more volatile than CSL. It trades about -0.49 of its total potential returns per unit of risk. CSL is currently generating about -0.27 per unit of volatility. If you would invest 9,641 in CSL on August 27, 2024 and sell it today you would lose (641.00) from holding CSL or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hookipa Pharma vs. CSL
Performance |
| Timeline |
| Hookipa Pharma |
| CSL |
Hookipa Pharma and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and CSL
The main advantage of trading using opposite Hookipa Pharma and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL'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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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