Correlation Between ProKidney Corp and Graphite Bio
Can any of the company-specific risk be diversified away by investing in both ProKidney Corp 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 ProKidney Corp and Graphite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProKidney Corp and Graphite Bio, you can compare the effects of market volatilities on ProKidney Corp 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 ProKidney Corp with a short position of Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProKidney Corp and Graphite Bio.
Diversification Opportunities for ProKidney Corp and Graphite Bio
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProKidney and Graphite is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ProKidney Corp and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio and ProKidney Corp 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 ProKidney Corp 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 ProKidney Corp i.e., ProKidney Corp and Graphite Bio go up and down completely randomly.
Pair Corralation between ProKidney Corp and Graphite Bio
If you would invest 155.00 in ProKidney Corp on September 2, 2024 and sell it today you would earn a total of 45.00 from holding ProKidney Corp or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ProKidney Corp vs. Graphite Bio
Performance |
| Timeline |
| ProKidney Corp |
| Graphite Bio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProKidney Corp and Graphite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProKidney Corp and Graphite Bio
The main advantage of trading using opposite ProKidney Corp and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProKidney Corp 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.| ProKidney Corp vs. Relay Therapeutics | ProKidney Corp vs. Stoke Therapeutics | ProKidney Corp vs. Pliant Therapeutics | ProKidney Corp vs. Black Diamond Therapeutics |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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