Correlation Between Standard Biotools and RAPT Therapeutics
Can any of the company-specific risk be diversified away by investing in both Standard Biotools and RAPT Therapeutics 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 Standard Biotools and RAPT Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Biotools and RAPT Therapeutics, you can compare the effects of market volatilities on Standard Biotools and RAPT Therapeutics 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 Standard Biotools with a short position of RAPT Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Biotools and RAPT Therapeutics.
Diversification Opportunities for Standard Biotools and RAPT Therapeutics
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Standard and RAPT is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Standard Biotools and RAPT Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAPT Therapeutics and Standard Biotools 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 Standard Biotools are associated (or correlated) with RAPT Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAPT Therapeutics has no effect on the direction of Standard Biotools i.e., Standard Biotools and RAPT Therapeutics go up and down completely randomly.
Pair Corralation between Standard Biotools and RAPT Therapeutics
Considering the 90-day investment horizon Standard Biotools is expected to under-perform the RAPT Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Standard Biotools is 2.0 times less risky than RAPT Therapeutics. The stock trades about -0.03 of its potential returns per unit of risk. The RAPT Therapeutics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,832 in RAPT Therapeutics on November 19, 2025 and sell it today you would earn a total of 2,940 from holding RAPT Therapeutics or generate 103.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Biotools vs. RAPT Therapeutics
Performance |
| Timeline |
| Standard Biotools |
| RAPT Therapeutics |
Standard Biotools and RAPT Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Biotools and RAPT Therapeutics
The main advantage of trading using opposite Standard Biotools and RAPT Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Biotools position performs unexpectedly, RAPT Therapeutics 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 RAPT Therapeutics will offset losses from the drop in RAPT Therapeutics' long position.| Standard Biotools vs. Varex Imaging Corp | Standard Biotools vs. CeriBell | Standard Biotools vs. Cullinan Oncology LLC | Standard Biotools vs. Avanos Medical |
| RAPT Therapeutics vs. Neumora Therapeutics | RAPT Therapeutics vs. Bicycle Therapeutics | RAPT Therapeutics vs. Omeros | RAPT Therapeutics vs. ADC Therapeutics SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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