Correlation Between ATyr Pharma and Beam Therapeutics
Can any of the company-specific risk be diversified away by investing in both ATyr Pharma and Beam 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 ATyr Pharma and Beam Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATyr Pharma and Beam Therapeutics, you can compare the effects of market volatilities on ATyr Pharma and Beam 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 ATyr Pharma with a short position of Beam Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATyr Pharma and Beam Therapeutics.
Diversification Opportunities for ATyr Pharma and Beam Therapeutics
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATyr and Beam is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ATyr Pharma and Beam Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beam Therapeutics and ATyr Pharma 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 ATyr Pharma are associated (or correlated) with Beam Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beam Therapeutics has no effect on the direction of ATyr Pharma i.e., ATyr Pharma and Beam Therapeutics go up and down completely randomly.
Pair Corralation between ATyr Pharma and Beam Therapeutics
Given the investment horizon of 90 days ATyr Pharma is expected to under-perform the Beam Therapeutics. In addition to that, ATyr Pharma is 2.11 times more volatile than Beam Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Beam Therapeutics is currently generating about 0.01 per unit of volatility. If you would invest 2,957 in Beam Therapeutics on August 27, 2024 and sell it today you would lose (452.00) from holding Beam Therapeutics or give up 15.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.23% |
| Values | Daily Returns |
ATyr Pharma vs. Beam Therapeutics
Performance |
| Timeline |
| ATyr Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Beam Therapeutics |
ATyr Pharma and Beam Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATyr Pharma and Beam Therapeutics
The main advantage of trading using opposite ATyr Pharma and Beam Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATyr Pharma position performs unexpectedly, Beam 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 Beam Therapeutics will offset losses from the drop in Beam Therapeutics' long position.| ATyr Pharma vs. Mereo BioPharma Group | ATyr Pharma vs. Terns Pharmaceuticals | ATyr Pharma vs. PDS Biotechnology Corp | ATyr Pharma vs. Inozyme Pharma |
| Beam Therapeutics vs. Eliem Therapeutics | Beam Therapeutics vs. HCW Biologics | Beam Therapeutics vs. Scpharmaceuticals | Beam Therapeutics vs. Milestone Pharmaceuticals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |