Correlation Between Icosavax and Passage Bio
Can any of the company-specific risk be diversified away by investing in both Icosavax and Passage Bio 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 Icosavax and Passage Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icosavax and Passage Bio, you can compare the effects of market volatilities on Icosavax and Passage Bio 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 Icosavax with a short position of Passage Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icosavax and Passage Bio.
Diversification Opportunities for Icosavax and Passage Bio
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Icosavax and Passage is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Icosavax and Passage Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passage Bio and Icosavax 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 Icosavax are associated (or correlated) with Passage Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passage Bio has no effect on the direction of Icosavax i.e., Icosavax and Passage Bio go up and down completely randomly.
Pair Corralation between Icosavax and Passage Bio
If you would invest 65.00 in Passage Bio on October 20, 2024 and sell it today you would lose (5.00) from holding Passage Bio or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Icosavax vs. Passage Bio
Performance |
| Timeline |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Passage Bio |
Icosavax and Passage Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icosavax and Passage Bio
The main advantage of trading using opposite Icosavax and Passage Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icosavax position performs unexpectedly, Passage Bio 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 Passage Bio will offset losses from the drop in Passage Bio's long position.| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
| Passage Bio vs. Black Diamond Therapeutics | Passage Bio vs. Revolution Medicines | Passage Bio vs. Stoke Therapeutics | Passage Bio vs. Cabaletta Bio |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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