Correlation Between RAPT Therapeutics and Passage Bio
Can any of the company-specific risk be diversified away by investing in both RAPT Therapeutics and Passage 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 RAPT Therapeutics and Passage Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAPT Therapeutics and Passage Bio, you can compare the effects of market volatilities on RAPT Therapeutics and Passage 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 RAPT Therapeutics with a short position of Passage Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAPT Therapeutics and Passage Bio.
Diversification Opportunities for RAPT Therapeutics and Passage Bio
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between RAPT and Passage is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding RAPT Therapeutics and Passage Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passage Bio and RAPT 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 RAPT Therapeutics are associated (or correlated) with Passage Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passage Bio has no effect on the direction of RAPT Therapeutics i.e., RAPT Therapeutics and Passage Bio go up and down completely randomly.
Pair Corralation between RAPT Therapeutics and Passage Bio
Given the investment horizon of 90 days RAPT Therapeutics is expected to generate 0.85 times more return on investment than Passage Bio. However, RAPT Therapeutics is 1.17 times less risky than Passage Bio. It trades about 0.0 of its potential returns per unit of risk. Passage Bio is currently generating about -0.17 per unit of risk. If you would invest 116.00 in RAPT Therapeutics on November 28, 2024 and sell it today you would lose (1.00) from holding RAPT Therapeutics or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RAPT Therapeutics vs. Passage Bio
Performance |
| Timeline |
| RAPT Therapeutics |
| Passage Bio |
RAPT Therapeutics and Passage Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RAPT Therapeutics and Passage Bio
The main advantage of trading using opposite RAPT Therapeutics and Passage Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAPT Therapeutics position performs unexpectedly, Passage 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 Passage Bio will offset losses from the drop in Passage Bio's long position.| RAPT Therapeutics vs. Connect Biopharma Holdings | RAPT Therapeutics vs. Tyra Biosciences | RAPT Therapeutics vs. Xilio Development | RAPT Therapeutics vs. Mineralys Therapeutics, Common |
| Passage Bio vs. Black Diamond Therapeutics | Passage Bio vs. Revolution Medicines | Passage Bio vs. Stoke Therapeutics | Passage Bio vs. Cabaletta Bio |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |