Correlation Between Molecular Partners and Graphite Bio
Can any of the company-specific risk be diversified away by investing in both Molecular Partners and Graphite Bio 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 Graphite Bio 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 Graphite Bio, you can compare the effects of market volatilities on Molecular Partners and Graphite Bio 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 Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Partners and Graphite Bio.
Diversification Opportunities for Molecular Partners and Graphite Bio
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molecular and Graphite is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio 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 Graphite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite Bio has no effect on the direction of Molecular Partners i.e., Molecular Partners and Graphite Bio go up and down completely randomly.
Pair Corralation between Molecular Partners and Graphite Bio
If you would invest 536.00 in Molecular Partners AG on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Molecular Partners AG or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Molecular Partners AG vs. Graphite Bio
Performance |
| Timeline |
| Molecular Partners |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Molecular Partners and Graphite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molecular Partners and Graphite Bio
The main advantage of trading using opposite Molecular Partners and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Partners position performs unexpectedly, Graphite Bio 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 Graphite Bio will offset losses from the drop in Graphite Bio's long position.| Molecular Partners vs. Mineralys Therapeutics, Common | Molecular Partners vs. AN2 Therapeutics | Molecular Partners vs. Pharvaris BV | Molecular Partners vs. PepGen |
| Graphite Bio vs. Assembly Biosciences | Graphite Bio vs. Instil Bio | Graphite Bio vs. Nuvation Bio | Graphite Bio vs. Achilles Therapeutics PLC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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