Correlation Between Leap Therapeutics and GH Research
Can any of the company-specific risk be diversified away by investing in both Leap Therapeutics and GH Research 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 Leap Therapeutics and GH Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leap Therapeutics and GH Research PLC, you can compare the effects of market volatilities on Leap Therapeutics and GH Research 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 Leap Therapeutics with a short position of GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leap Therapeutics and GH Research.
Diversification Opportunities for Leap Therapeutics and GH Research
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leap and GHRS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Leap Therapeutics and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC and Leap 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 Leap Therapeutics are associated (or correlated) with GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of Leap Therapeutics i.e., Leap Therapeutics and GH Research go up and down completely randomly.
Pair Corralation between Leap Therapeutics and GH Research
Given the investment horizon of 90 days Leap Therapeutics is expected to under-perform the GH Research. In addition to that, Leap Therapeutics is 4.08 times more volatile than GH Research PLC. It trades about -0.39 of its total potential returns per unit of risk. GH Research PLC is currently generating about 0.28 per unit of volatility. If you would invest 791.00 in GH Research PLC on November 2, 2024 and sell it today you would earn a total of 178.00 from holding GH Research PLC or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leap Therapeutics vs. GH Research PLC
Performance |
| Timeline |
| Leap Therapeutics |
| GH Research PLC |
Leap Therapeutics and GH Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leap Therapeutics and GH Research
The main advantage of trading using opposite Leap Therapeutics and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leap Therapeutics position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research's long position.| Leap Therapeutics vs. Surrozen | Leap Therapeutics vs. Armata Pharmaceuticals | Leap Therapeutics vs. Pasithea Therapeutics Corp | Leap Therapeutics vs. Aditxt Inc |
| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |