Correlation Between Molecular Partners and Erasca
Can any of the company-specific risk be diversified away by investing in both Molecular Partners and Erasca 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 Molecular Partners and Erasca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molecular Partners AG and Erasca Inc, you can compare the effects of market volatilities on Molecular Partners and Erasca 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 Molecular Partners with a short position of Erasca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Partners and Erasca.
Diversification Opportunities for Molecular Partners and Erasca
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Molecular and Erasca is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Erasca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erasca Inc and Molecular Partners 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 Molecular Partners AG are associated (or correlated) with Erasca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erasca Inc has no effect on the direction of Molecular Partners i.e., Molecular Partners and Erasca go up and down completely randomly.
Pair Corralation between Molecular Partners and Erasca
Given the investment horizon of 90 days Molecular Partners AG is expected to generate 0.68 times more return on investment than Erasca. However, Molecular Partners AG is 1.48 times less risky than Erasca. It trades about -0.18 of its potential returns per unit of risk. Erasca Inc is currently generating about -0.46 per unit of risk. If you would invest 531.00 in Molecular Partners AG on November 29, 2024 and sell it today you would lose (44.00) from holding Molecular Partners AG or give up 8.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Molecular Partners AG vs. Erasca Inc
Performance |
| Timeline |
| Molecular Partners |
| Erasca Inc |
Molecular Partners and Erasca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molecular Partners and Erasca
The main advantage of trading using opposite Molecular Partners and Erasca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Partners position performs unexpectedly, Erasca 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 Erasca will offset losses from the drop in Erasca's long position.| Molecular Partners vs. Mineralys Therapeutics, Common | Molecular Partners vs. AN2 Therapeutics | Molecular Partners vs. Pharvaris BV | Molecular Partners vs. PepGen |
| Erasca vs. Century Therapeutics | Erasca vs. Keros Therapeutics | Erasca vs. Monte Rosa Therapeutics | Erasca vs. Design 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| 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 Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |