Correlation Between Uniqure NV and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Uniqure NV and Stoke 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 Uniqure NV and Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniqure NV and Stoke Therapeutics, you can compare the effects of market volatilities on Uniqure NV and Stoke 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 Uniqure NV with a short position of Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniqure NV and Stoke Therapeutics.
Diversification Opportunities for Uniqure NV and Stoke Therapeutics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniqure and Stoke is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Uniqure NV and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Uniqure NV i.e., Uniqure NV and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Uniqure NV and Stoke Therapeutics
Given the investment horizon of 90 days Uniqure NV is expected to under-perform the Stoke Therapeutics. In addition to that, Uniqure NV is 1.35 times more volatile than Stoke Therapeutics. It trades about -0.28 of its total potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.19 per unit of volatility. If you would invest 811.00 in Stoke Therapeutics on January 12, 2025 and sell it today you would lose (159.00) from holding Stoke Therapeutics or give up 19.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniqure NV vs. Stoke Therapeutics
Performance |
| Timeline |
| Uniqure NV |
| Stoke Therapeutics |
Uniqure NV and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniqure NV and Stoke Therapeutics
The main advantage of trading using opposite Uniqure NV and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniqure NV position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Uniqure NV vs. Rocket Pharmaceuticals | Uniqure NV vs. Rhythm Pharmaceuticals | Uniqure NV vs. Solid Biosciences LLC | Uniqure NV vs. MeiraGTx Holdings PLC |
| Stoke Therapeutics vs. Adaptimmune Therapeutics Plc | Stoke Therapeutics vs. Black Diamond Therapeutics | Stoke Therapeutics vs. Relay Therapeutics | Stoke Therapeutics vs. Pliant Therapeutics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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