Correlation Between Hookipa Pharma and Arcus Biosciences
Can any of the company-specific risk be diversified away by investing in both Hookipa Pharma and Arcus Biosciences 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 Arcus Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hookipa Pharma and Arcus Biosciences, you can compare the effects of market volatilities on Hookipa Pharma and Arcus Biosciences 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 Arcus Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hookipa Pharma and Arcus Biosciences.
Diversification Opportunities for Hookipa Pharma and Arcus Biosciences
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hookipa and Arcus is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Arcus Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcus Biosciences 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 Arcus Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcus Biosciences has no effect on the direction of Hookipa Pharma i.e., Hookipa Pharma and Arcus Biosciences go up and down completely randomly.
Pair Corralation between Hookipa Pharma and Arcus Biosciences
Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Arcus Biosciences. In addition to that, Hookipa Pharma is 1.15 times more volatile than Arcus Biosciences. It trades about -0.46 of its total potential returns per unit of risk. Arcus Biosciences is currently generating about -0.04 per unit of volatility. If you would invest 1,666 in Arcus Biosciences on August 29, 2024 and sell it today you would lose (87.00) from holding Arcus Biosciences or give up 5.22% 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. Arcus Biosciences
Performance |
| Timeline |
| Hookipa Pharma |
| Arcus Biosciences |
Hookipa Pharma and Arcus Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hookipa Pharma and Arcus Biosciences
The main advantage of trading using opposite Hookipa Pharma and Arcus Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma position performs unexpectedly, Arcus Biosciences 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 Arcus Biosciences will offset losses from the drop in Arcus Biosciences' long position.| Hookipa Pharma vs. Mereo BioPharma Group | Hookipa Pharma vs. Terns Pharmaceuticals | Hookipa Pharma vs. PDS Biotechnology Corp | Hookipa Pharma vs. Inozyme Pharma |
| Arcus Biosciences vs. Cullinan Oncology LLC | Arcus Biosciences vs. Annexon | Arcus Biosciences vs. Structure Therapeutics American | Arcus Biosciences vs. Relay Therapeutics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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