Correlation Between Hookipa Pharma and Mediwound
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma and Mediwound 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 Mediwound into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and Mediwound, you can compare the effects of market volatilities on Hookipa Pharma and Mediwound 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 Mediwound. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and Mediwound.
Diversification Opportunities for Hookipa Pharma and Mediwound
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hookipa and Mediwound is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Mediwound in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediwound 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 Mediwound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediwound has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and Mediwound go up and down completely randomly.
Pair Corralation between Hookipa Pharma and Mediwound
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Mediwound. In addition to that, Hookipa Pharma is 1.62 times more volatile than Mediwound. It trades about -0.46 of its total potential returns per unit of risk. Mediwound is currently generating about -0.05 per unit of volatility. If you would invest 1,757 in Mediwound on August 28, 2024 and sell it today you would lose (67.00) from holding Mediwound or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hookipa Pharma vs. Mediwound
Performance |
| Timeline |
| Hookipa Pharma |
| Mediwound |
Hookipa Pharma and Mediwound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and Mediwound
The main advantage of trading using opposite Hookipa Pharma and Mediwound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma position performs unexpectedly, Mediwound 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 Mediwound will offset losses from the drop in Mediwound'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 |
| Mediwound vs. Capricor Therapeutics | Mediwound vs. Soleno Therapeutics | Mediwound vs. Bio Path Holdings | Mediwound vs. Moleculin Biotech |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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