Correlation Between ProQR Therapeutics and Sellas Life
Can any of the company-specific risk be diversified away by investing in both ProQR Therapeutics and Sellas Life 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 ProQR Therapeutics and Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProQR Therapeutics BV and Sellas Life Sciences, you can compare the effects of market volatilities on ProQR Therapeutics and Sellas Life 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 ProQR Therapeutics with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProQR Therapeutics and Sellas Life.
Diversification Opportunities for ProQR Therapeutics and Sellas Life
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProQR and Sellas is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ProQR Therapeutics BV and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and ProQR 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 ProQR Therapeutics BV are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of ProQR Therapeutics i.e., ProQR Therapeutics and Sellas Life go up and down completely randomly.
Pair Corralation between ProQR Therapeutics and Sellas Life
Given the investment horizon of 90 days ProQR Therapeutics BV is expected to generate 0.61 times more return on investment than Sellas Life. However, ProQR Therapeutics BV is 1.64 times less risky than Sellas Life. It trades about 0.15 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.1 per unit of risk. If you would invest 211.00 in ProQR Therapeutics BV on November 27, 2024 and sell it today you would earn a total of 28.00 from holding ProQR Therapeutics BV or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProQR Therapeutics BV vs. Sellas Life Sciences
Performance |
| Timeline |
| ProQR Therapeutics |
| Sellas Life Sciences |
ProQR Therapeutics and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProQR Therapeutics and Sellas Life
The main advantage of trading using opposite ProQR Therapeutics and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProQR Therapeutics position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| ProQR Therapeutics vs. Annexon | ProQR Therapeutics vs. Arrowhead Pharmaceuticals | ProQR Therapeutics vs. Day One Biopharmaceuticals | ProQR Therapeutics vs. Terns Pharmaceuticals |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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