Correlation Between Relay Therapeutics and Accolade
Can any of the company-specific risk be diversified away by investing in both Relay Therapeutics and Accolade 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 Relay Therapeutics and Accolade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Relay Therapeutics and Accolade, you can compare the effects of market volatilities on Relay Therapeutics and Accolade 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 Relay Therapeutics with a short position of Accolade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Relay Therapeutics and Accolade.
Diversification Opportunities for Relay Therapeutics and Accolade
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Relay and Accolade is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Relay Therapeutics and Accolade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accolade and Relay 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 Relay Therapeutics are associated (or correlated) with Accolade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accolade has no effect on the direction of Relay Therapeutics i.e., Relay Therapeutics and Accolade go up and down completely randomly.
Pair Corralation between Relay Therapeutics and Accolade
Given the investment horizon of 90 days Relay Therapeutics is expected to under-perform the Accolade. In addition to that, Relay Therapeutics is 1.07 times more volatile than Accolade. It trades about -0.03 of its total potential returns per unit of risk. Accolade is currently generating about -0.01 per unit of volatility. If you would invest 834.00 in Accolade on August 26, 2024 and sell it today you would lose (464.00) from holding Accolade or give up 55.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Relay Therapeutics vs. Accolade
Performance |
| Timeline |
| Relay Therapeutics |
| Accolade |
Relay Therapeutics and Accolade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Relay Therapeutics and Accolade
The main advantage of trading using opposite Relay Therapeutics and Accolade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Relay Therapeutics position performs unexpectedly, Accolade 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 Accolade will offset losses from the drop in Accolade's long position.| Relay Therapeutics vs. Eliem Therapeutics | Relay Therapeutics vs. HCW Biologics | Relay Therapeutics vs. Scpharmaceuticals | Relay Therapeutics vs. Milestone Pharmaceuticals |
| Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Forian Inc | Accolade vs. HealthEquity |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets |