Correlation Between Protagonist Therapeutics and Sarepta Therapeutics
Can any of the company-specific risk be diversified away by investing in both Protagonist Therapeutics and Sarepta 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 Protagonist Therapeutics and Sarepta Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protagonist Therapeutics and Sarepta Therapeutics, you can compare the effects of market volatilities on Protagonist Therapeutics and Sarepta 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 Protagonist Therapeutics with a short position of Sarepta Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protagonist Therapeutics and Sarepta Therapeutics.
Diversification Opportunities for Protagonist Therapeutics and Sarepta Therapeutics
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Protagonist and Sarepta is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Protagonist Therapeutics and Sarepta Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarepta Therapeutics and Protagonist 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 Protagonist Therapeutics are associated (or correlated) with Sarepta Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarepta Therapeutics has no effect on the direction of Protagonist Therapeutics i.e., Protagonist Therapeutics and Sarepta Therapeutics go up and down completely randomly.
Pair Corralation between Protagonist Therapeutics and Sarepta Therapeutics
Given the investment horizon of 90 days Protagonist Therapeutics is expected to generate 2.76 times less return on investment than Sarepta Therapeutics. But when comparing it to its historical volatility, Protagonist Therapeutics is 1.03 times less risky than Sarepta Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Sarepta Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 12,453 in Sarepta Therapeutics on August 28, 2024 and sell it today you would earn a total of 597.00 from holding Sarepta Therapeutics or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protagonist Therapeutics vs. Sarepta Therapeutics
Performance |
| Timeline |
| Protagonist Therapeutics |
| Sarepta Therapeutics |
Protagonist Therapeutics and Sarepta Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protagonist Therapeutics and Sarepta Therapeutics
The main advantage of trading using opposite Protagonist Therapeutics and Sarepta Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protagonist Therapeutics position performs unexpectedly, Sarepta 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 Sarepta Therapeutics will offset losses from the drop in Sarepta Therapeutics' long position.| Protagonist Therapeutics vs. Eliem Therapeutics | Protagonist Therapeutics vs. Scpharmaceuticals | Protagonist Therapeutics vs. Milestone Pharmaceuticals | Protagonist Therapeutics vs. Seres Therapeutics |
| Sarepta Therapeutics vs. Krystal Biotech | Sarepta Therapeutics vs. PTC Therapeutics | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Madrigal Pharmaceuticals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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