Correlation Between Uniqure NV and Puma Biotechnology
Can any of the company-specific risk be diversified away by investing in both Uniqure NV and Puma Biotechnology 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 Uniqure NV and Puma Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniqure NV and Puma Biotechnology, you can compare the effects of market volatilities on Uniqure NV and Puma Biotechnology 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 Uniqure NV with a short position of Puma Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniqure NV and Puma Biotechnology.
Diversification Opportunities for Uniqure NV and Puma Biotechnology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Uniqure and Puma is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Uniqure NV and Puma Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puma Biotechnology and Uniqure NV 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 Uniqure NV are associated (or correlated) with Puma Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puma Biotechnology has no effect on the direction of Uniqure NV i.e., Uniqure NV and Puma Biotechnology go up and down completely randomly.
Pair Corralation between Uniqure NV and Puma Biotechnology
Given the investment horizon of 90 days Uniqure NV is expected to generate 5.8 times more return on investment than Puma Biotechnology. However, Uniqure NV is 5.8 times more volatile than Puma Biotechnology. It trades about 0.25 of its potential returns per unit of risk. Puma Biotechnology is currently generating about 0.22 per unit of risk. If you would invest 621.00 in Uniqure NV on September 16, 2024 and sell it today you would earn a total of 919.00 from holding Uniqure NV or generate 147.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniqure NV vs. Puma Biotechnology
Performance |
| Timeline |
| Uniqure NV |
| Puma Biotechnology |
Uniqure NV and Puma Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniqure NV and Puma Biotechnology
The main advantage of trading using opposite Uniqure NV and Puma Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniqure NV position performs unexpectedly, Puma Biotechnology 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 Puma Biotechnology will offset losses from the drop in Puma Biotechnology's long position.| Uniqure NV vs. Puma Biotechnology | Uniqure NV vs. Iovance Biotherapeutics | Uniqure NV vs. Inozyme Pharma | Uniqure NV vs. Zentalis Pharmaceuticals Llc |
| Puma Biotechnology vs. Ultragenyx | Puma Biotechnology vs. Crinetics Pharmaceuticals | Puma Biotechnology vs. Arvinas | Puma Biotechnology vs. Revolution Medicines |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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