Correlation Between Mink Therapeutics and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Mink Therapeutics and Sellas Life 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 Mink Therapeutics and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mink Therapeutics and Sellas Life Sciences, you can compare the effects of market volatilities on Mink Therapeutics and Sellas Life 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 Mink Therapeutics with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mink Therapeutics and Sellas Life.
Diversification Opportunities for Mink Therapeutics and Sellas Life
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mink and Sellas is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mink Therapeutics and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and Mink Therapeutics 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 Mink Therapeutics are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Mink Therapeutics i.e., Mink Therapeutics and Sellas Life go up and down completely randomly.
Pair Corralation between Mink Therapeutics and Sellas Life
Given the investment horizon of 90 days Mink Therapeutics is expected to generate 0.77 times more return on investment than Sellas Life. However, Mink Therapeutics is 1.29 times less risky than Sellas Life. It trades about 0.06 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.05 per unit of risk. If you would invest 71.00 in Mink Therapeutics on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Mink Therapeutics or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mink Therapeutics vs. Sellas Life Sciences
Performance |
| Timeline |
| Mink Therapeutics |
| Sellas Life Sciences |
Mink Therapeutics and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mink Therapeutics and Sellas Life
The main advantage of trading using opposite Mink Therapeutics and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mink Therapeutics position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Mink Therapeutics vs. Affimed NV | Mink Therapeutics vs. Adaptimmune Therapeutics Plc | Mink Therapeutics vs. Sangamo Therapeutics | Mink Therapeutics vs. Day One Biopharmaceuticals |
| Sellas Life vs. Tff Pharmaceuticals | Sellas Life vs. Eliem Therapeutics | Sellas Life vs. Inhibrx | Sellas Life vs. Enliven 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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