Correlation Between Larimar Therapeutics and Cytokinetics
Can any of the company-specific risk be diversified away by investing in both Larimar Therapeutics and Cytokinetics 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 Larimar Therapeutics and Cytokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Larimar Therapeutics and Cytokinetics, you can compare the effects of market volatilities on Larimar Therapeutics and Cytokinetics 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 Larimar Therapeutics with a short position of Cytokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Larimar Therapeutics and Cytokinetics.
Diversification Opportunities for Larimar Therapeutics and Cytokinetics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Larimar and Cytokinetics is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Larimar Therapeutics and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics and Larimar 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 Larimar Therapeutics are associated (or correlated) with Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Larimar Therapeutics i.e., Larimar Therapeutics and Cytokinetics go up and down completely randomly.
Pair Corralation between Larimar Therapeutics and Cytokinetics
Given the investment horizon of 90 days Larimar Therapeutics is expected to under-perform the Cytokinetics. In addition to that, Larimar Therapeutics is 1.95 times more volatile than Cytokinetics. It trades about -0.17 of its total potential returns per unit of risk. Cytokinetics is currently generating about 0.04 per unit of volatility. If you would invest 5,100 in Cytokinetics on September 1, 2024 and sell it today you would earn a total of 86.00 from holding Cytokinetics or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Larimar Therapeutics vs. Cytokinetics
Performance |
| Timeline |
| Larimar Therapeutics |
| Cytokinetics |
Larimar Therapeutics and Cytokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Larimar Therapeutics and Cytokinetics
The main advantage of trading using opposite Larimar Therapeutics and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Larimar Therapeutics position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.| Larimar Therapeutics vs. Vaxcyte | Larimar Therapeutics vs. Syndax Pharmaceuticals | Larimar Therapeutics vs. Merus BV | Larimar Therapeutics vs. Sutro Biopharma |
| Cytokinetics vs. Edgewise Therapeutics | Cytokinetics vs. Dyne Therapeutics | Cytokinetics vs. Stoke Therapeutics | Cytokinetics 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |