Correlation Between Seres Therapeutics and Aurinia Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Seres Therapeutics and Aurinia Pharmaceuticals 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 Seres Therapeutics and Aurinia Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seres Therapeutics and Aurinia Pharmaceuticals, you can compare the effects of market volatilities on Seres Therapeutics and Aurinia Pharmaceuticals 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 Seres Therapeutics with a short position of Aurinia Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seres Therapeutics and Aurinia Pharmaceuticals.
Diversification Opportunities for Seres Therapeutics and Aurinia Pharmaceuticals
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seres and Aurinia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Seres Therapeutics and Aurinia Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurinia Pharmaceuticals and Seres 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 Seres Therapeutics are associated (or correlated) with Aurinia Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurinia Pharmaceuticals has no effect on the direction of Seres Therapeutics i.e., Seres Therapeutics and Aurinia Pharmaceuticals go up and down completely randomly.
Pair Corralation between Seres Therapeutics and Aurinia Pharmaceuticals
Given the investment horizon of 90 days Seres Therapeutics is expected to generate 2.82 times more return on investment than Aurinia Pharmaceuticals. However, Seres Therapeutics is 2.82 times more volatile than Aurinia Pharmaceuticals. It trades about 0.14 of its potential returns per unit of risk. Aurinia Pharmaceuticals is currently generating about 0.33 per unit of risk. If you would invest 82.00 in Seres Therapeutics on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Seres Therapeutics or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Seres Therapeutics vs. Aurinia Pharmaceuticals
Performance |
| Timeline |
| Seres Therapeutics |
| Aurinia Pharmaceuticals |
Seres Therapeutics and Aurinia Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seres Therapeutics and Aurinia Pharmaceuticals
The main advantage of trading using opposite Seres Therapeutics and Aurinia Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seres Therapeutics position performs unexpectedly, Aurinia Pharmaceuticals 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 Aurinia Pharmaceuticals will offset losses from the drop in Aurinia Pharmaceuticals' long position.| Seres Therapeutics vs. Syros Pharmaceuticals | Seres Therapeutics vs. Iovance Biotherapeutics | Seres Therapeutics vs. Veracyte | Seres Therapeutics vs. Fate Therapeutics |
| Aurinia Pharmaceuticals vs. Viking Therapeutics | Aurinia Pharmaceuticals vs. Axsome Therapeutics | Aurinia Pharmaceuticals vs. Madrigal Pharmaceuticals | Aurinia Pharmaceuticals vs. Seres 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |