Correlation Between Passage Bio and Y MAbs
Can any of the company-specific risk be diversified away by investing in both Passage Bio and Y MAbs 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 Passage Bio and Y MAbs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Passage Bio and Y mAbs Therapeutics, you can compare the effects of market volatilities on Passage Bio and Y MAbs 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 Passage Bio with a short position of Y MAbs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Passage Bio and Y MAbs.
Diversification Opportunities for Passage Bio and Y MAbs
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Passage and YMAB is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Passage Bio and Y mAbs Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y mAbs Therapeutics and Passage Bio 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 Passage Bio are associated (or correlated) with Y MAbs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y mAbs Therapeutics has no effect on the direction of Passage Bio i.e., Passage Bio and Y MAbs go up and down completely randomly.
Pair Corralation between Passage Bio and Y MAbs
Given the investment horizon of 90 days Passage Bio is expected to generate 2.9 times more return on investment than Y MAbs. However, Passage Bio is 2.9 times more volatile than Y mAbs Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Y mAbs Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 66.00 in Passage Bio on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Passage Bio or generate 71.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Passage Bio vs. Y mAbs Therapeutics
Performance |
| Timeline |
| Passage Bio |
| Y mAbs Therapeutics |
Passage Bio and Y MAbs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Passage Bio and Y MAbs
The main advantage of trading using opposite Passage Bio and Y MAbs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Passage Bio position performs unexpectedly, Y MAbs 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 Y MAbs will offset losses from the drop in Y MAbs' long position.| Passage Bio vs. Tff Pharmaceuticals | Passage Bio vs. Eliem Therapeutics | Passage Bio vs. Inhibrx | Passage Bio vs. Enliven Therapeutics |
| Y MAbs vs. Revolution Medicines | Y MAbs vs. Black Diamond Therapeutics | Y MAbs vs. Passage Bio | Y MAbs vs. Bluebird bio |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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