Correlation Between Intercept Pharmaceuticals and Geron
Can any of the company-specific risk be diversified away by investing in both Intercept Pharmaceuticals and Geron 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 Intercept Pharmaceuticals and Geron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercept Pharmaceuticals and Geron, you can compare the effects of market volatilities on Intercept Pharmaceuticals and Geron 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 Intercept Pharmaceuticals with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercept Pharmaceuticals and Geron.
Diversification Opportunities for Intercept Pharmaceuticals and Geron
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intercept and Geron is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intercept Pharmaceuticals and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and Intercept Pharmaceuticals 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 Intercept Pharmaceuticals are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Intercept Pharmaceuticals i.e., Intercept Pharmaceuticals and Geron go up and down completely randomly.
Pair Corralation between Intercept Pharmaceuticals and Geron
If you would invest 1,031 in Intercept Pharmaceuticals on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Intercept Pharmaceuticals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Intercept Pharmaceuticals vs. Geron
Performance |
| Timeline |
| Intercept Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Geron |
Intercept Pharmaceuticals and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercept Pharmaceuticals and Geron
The main advantage of trading using opposite Intercept Pharmaceuticals and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercept Pharmaceuticals position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.The idea behind Intercept Pharmaceuticals and Geron pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |