Correlation Between ATyr Pharma and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both ATyr Pharma and Stoke 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 Stoke 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 Stoke Therapeutics, you can compare the effects of market volatilities on ATyr Pharma and Stoke 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 Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATyr Pharma and Stoke Therapeutics.
Diversification Opportunities for ATyr Pharma and Stoke Therapeutics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATyr and Stoke is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ATyr Pharma and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of ATyr Pharma i.e., ATyr Pharma and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between ATyr Pharma and Stoke Therapeutics
Given the investment horizon of 90 days ATyr Pharma is expected to under-perform the Stoke Therapeutics. In addition to that, ATyr Pharma is 1.07 times more volatile than Stoke Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Stoke Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 830.00 in Stoke Therapeutics on September 5, 2024 and sell it today you would earn a total of 451.00 from holding Stoke Therapeutics or generate 54.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.35% |
| Values | Daily Returns |
ATyr Pharma vs. Stoke Therapeutics
Performance |
| Timeline |
| ATyr Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stoke Therapeutics |
ATyr Pharma and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATyr Pharma and Stoke Therapeutics
The main advantage of trading using opposite ATyr Pharma and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATyr Pharma position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke 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 |
| Stoke Therapeutics vs. Adaptimmune Therapeutics Plc | Stoke Therapeutics vs. Black Diamond Therapeutics | Stoke Therapeutics vs. Relay Therapeutics | Stoke Therapeutics vs. Pliant 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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