Correlation Between Mustang Bio and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both Mustang Bio and Eliem 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 Mustang Bio and Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mustang Bio and Eliem Therapeutics, you can compare the effects of market volatilities on Mustang Bio and Eliem 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 Mustang Bio with a short position of Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mustang Bio and Eliem Therapeutics.
Diversification Opportunities for Mustang Bio and Eliem Therapeutics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mustang and Eliem is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mustang Bio and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics and Mustang Bio 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 Mustang Bio are associated (or correlated) with Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of Mustang Bio i.e., Mustang Bio and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between Mustang Bio and Eliem Therapeutics
Given the investment horizon of 90 days Mustang Bio is expected to under-perform the Eliem Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Mustang Bio is 1.22 times less risky than Eliem Therapeutics. The stock trades about -0.43 of its potential returns per unit of risk. The Eliem Therapeutics is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Eliem Therapeutics on August 28, 2024 and sell it today you would lose (111.00) from holding Eliem Therapeutics or give up 27.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Mustang Bio vs. Eliem Therapeutics
Performance |
| Timeline |
| Mustang Bio |
| Eliem Therapeutics |
Mustang Bio and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mustang Bio and Eliem Therapeutics
The main advantage of trading using opposite Mustang Bio and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mustang Bio position performs unexpectedly, Eliem 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| Mustang Bio vs. Eliem Therapeutics | Mustang Bio vs. HCW Biologics | Mustang Bio vs. Scpharmaceuticals | Mustang Bio vs. Milestone Pharmaceuticals |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |