Correlation Between Puma Biotechnology and Inhibikase Therapeutics
Can any of the company-specific risk be diversified away by investing in both Puma Biotechnology and Inhibikase Therapeutics 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 Puma Biotechnology and Inhibikase Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puma Biotechnology and Inhibikase Therapeutics, you can compare the effects of market volatilities on Puma Biotechnology and Inhibikase Therapeutics 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 Puma Biotechnology with a short position of Inhibikase Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puma Biotechnology and Inhibikase Therapeutics.
Diversification Opportunities for Puma Biotechnology and Inhibikase Therapeutics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Puma and Inhibikase is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Puma Biotechnology and Inhibikase Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibikase Therapeutics and Puma Biotechnology 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 Puma Biotechnology are associated (or correlated) with Inhibikase Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibikase Therapeutics has no effect on the direction of Puma Biotechnology i.e., Puma Biotechnology and Inhibikase Therapeutics go up and down completely randomly.
Pair Corralation between Puma Biotechnology and Inhibikase Therapeutics
Given the investment horizon of 90 days Puma Biotechnology is expected to generate 0.7 times more return on investment than Inhibikase Therapeutics. However, Puma Biotechnology is 1.43 times less risky than Inhibikase Therapeutics. It trades about 0.2 of its potential returns per unit of risk. Inhibikase Therapeutics is currently generating about 0.07 per unit of risk. If you would invest 279.00 in Puma Biotechnology on December 4, 2024 and sell it today you would earn a total of 56.00 from holding Puma Biotechnology or generate 20.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puma Biotechnology vs. Inhibikase Therapeutics
Performance |
| Timeline |
| Puma Biotechnology |
| Inhibikase Therapeutics |
Puma Biotechnology and Inhibikase Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puma Biotechnology and Inhibikase Therapeutics
The main advantage of trading using opposite Puma Biotechnology and Inhibikase Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puma Biotechnology position performs unexpectedly, Inhibikase Therapeutics 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 Inhibikase Therapeutics will offset losses from the drop in Inhibikase Therapeutics' long position.| Puma Biotechnology vs. Ultragenyx | Puma Biotechnology vs. Crinetics Pharmaceuticals | Puma Biotechnology vs. Arvinas | Puma Biotechnology vs. Revolution Medicines |
| Inhibikase Therapeutics vs. DiaMedica Therapeutics | Inhibikase Therapeutics vs. Milestone Pharmaceuticals | Inhibikase Therapeutics vs. Seres Therapeutics | Inhibikase Therapeutics vs. Oncolytics Biotech |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |