Correlation Between Nurix Therapeutics and Shattuck Labs
Can any of the company-specific risk be diversified away by investing in both Nurix Therapeutics and Shattuck Labs 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 Nurix Therapeutics and Shattuck Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nurix Therapeutics and Shattuck Labs, you can compare the effects of market volatilities on Nurix Therapeutics and Shattuck Labs 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 Nurix Therapeutics with a short position of Shattuck Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nurix Therapeutics and Shattuck Labs.
Diversification Opportunities for Nurix Therapeutics and Shattuck Labs
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nurix and Shattuck is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nurix Therapeutics and Shattuck Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shattuck Labs and Nurix 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 Nurix Therapeutics are associated (or correlated) with Shattuck Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shattuck Labs has no effect on the direction of Nurix Therapeutics i.e., Nurix Therapeutics and Shattuck Labs go up and down completely randomly.
Pair Corralation between Nurix Therapeutics and Shattuck Labs
Given the investment horizon of 90 days Nurix Therapeutics is expected to under-perform the Shattuck Labs. But the stock apears to be less risky and, when comparing its historical volatility, Nurix Therapeutics is 1.7 times less risky than Shattuck Labs. The stock trades about -0.05 of its potential returns per unit of risk. The Shattuck Labs is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Shattuck Labs on October 20, 2024 and sell it today you would earn a total of 7.00 from holding Shattuck Labs or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nurix Therapeutics vs. Shattuck Labs
Performance |
| Timeline |
| Nurix Therapeutics |
| Shattuck Labs |
Nurix Therapeutics and Shattuck Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nurix Therapeutics and Shattuck Labs
The main advantage of trading using opposite Nurix Therapeutics and Shattuck Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nurix Therapeutics position performs unexpectedly, Shattuck Labs 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 Shattuck Labs will offset losses from the drop in Shattuck Labs' long position.| Nurix Therapeutics vs. Foghorn Therapeutics | Nurix Therapeutics vs. Shattuck Labs | Nurix Therapeutics vs. Monte Rosa Therapeutics | Nurix Therapeutics vs. Kymera Therapeutics |
| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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