Correlation Between Molecular Partners and Personalis
Can any of the company-specific risk be diversified away by investing in both Molecular Partners and Personalis 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 Personalis 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 Personalis, you can compare the effects of market volatilities on Molecular Partners and Personalis 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 Personalis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Partners and Personalis.
Diversification Opportunities for Molecular Partners and Personalis
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Molecular and Personalis is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Personalis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personalis 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 Personalis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personalis has no effect on the direction of Molecular Partners i.e., Molecular Partners and Personalis go up and down completely randomly.
Pair Corralation between Molecular Partners and Personalis
Given the investment horizon of 90 days Molecular Partners is expected to generate 6.81 times less return on investment than Personalis. But when comparing it to its historical volatility, Molecular Partners AG is 1.41 times less risky than Personalis. It trades about 0.01 of its potential returns per unit of risk. Personalis is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Personalis on October 7, 2024 and sell it today you would earn a total of 398.00 from holding Personalis or generate 149.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molecular Partners AG vs. Personalis
Performance |
| Timeline |
| Molecular Partners |
| Personalis |
Molecular Partners and Personalis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molecular Partners and Personalis
The main advantage of trading using opposite Molecular Partners and Personalis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Partners position performs unexpectedly, Personalis 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 Personalis will offset losses from the drop in Personalis' long position.| Molecular Partners vs. Mineralys Therapeutics, Common | Molecular Partners vs. AN2 Therapeutics | Molecular Partners vs. Pharvaris BV | Molecular Partners vs. PepGen |
| Personalis vs. Twist Bioscience Corp | Personalis vs. Natera Inc | Personalis vs. Guardant Health | Personalis vs. Castle Biosciences |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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