Correlation Between Icosavax and Surrozen
Can any of the company-specific risk be diversified away by investing in both Icosavax and Surrozen 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 Surrozen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icosavax and Surrozen, you can compare the effects of market volatilities on Icosavax and Surrozen 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 Surrozen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icosavax and Surrozen.
Diversification Opportunities for Icosavax and Surrozen
Very weak diversification
The 3 months correlation between Icosavax and Surrozen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Icosavax and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen 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 Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Icosavax i.e., Icosavax and Surrozen go up and down completely randomly.
Pair Corralation between Icosavax and Surrozen
Given the investment horizon of 90 days Icosavax is expected to generate 1.71 times more return on investment than Surrozen. However, Icosavax is 1.71 times more volatile than Surrozen. It trades about 0.09 of its potential returns per unit of risk. Surrozen is currently generating about 0.04 per unit of risk. If you would invest 357.00 in Icosavax on August 29, 2024 and sell it today you would earn a total of 545.00 from holding Icosavax or generate 152.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.45% |
| Values | Daily Returns |
Icosavax vs. Surrozen
Performance |
| Timeline |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Surrozen |
Icosavax and Surrozen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icosavax and Surrozen
The main advantage of trading using opposite Icosavax and Surrozen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icosavax position performs unexpectedly, Surrozen 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 Surrozen will offset losses from the drop in Surrozen's long position.| Icosavax vs. Terns Pharmaceuticals | Icosavax vs. Amylyx Pharmaceuticals | Icosavax vs. Acumen Pharmaceuticals | Icosavax vs. Inozyme Pharma |
| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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