Correlation Between Sage Therapeutic and Monte Rosa
Can any of the company-specific risk be diversified away by investing in both Sage Therapeutic and Monte Rosa 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 Sage Therapeutic and Monte Rosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sage Therapeutic and Monte Rosa Therapeutics, you can compare the effects of market volatilities on Sage Therapeutic and Monte Rosa 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 Sage Therapeutic with a short position of Monte Rosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sage Therapeutic and Monte Rosa.
Diversification Opportunities for Sage Therapeutic and Monte Rosa
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sage and Monte is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sage Therapeutic and Monte Rosa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monte Rosa Therapeutics and Sage Therapeutic 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 Sage Therapeutic are associated (or correlated) with Monte Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monte Rosa Therapeutics has no effect on the direction of Sage Therapeutic i.e., Sage Therapeutic and Monte Rosa go up and down completely randomly.
Pair Corralation between Sage Therapeutic and Monte Rosa
Given the investment horizon of 90 days Sage Therapeutic is expected to under-perform the Monte Rosa. But the stock apears to be less risky and, when comparing its historical volatility, Sage Therapeutic is 1.76 times less risky than Monte Rosa. The stock trades about -0.07 of its potential returns per unit of risk. The Monte Rosa Therapeutics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 549.00 in Monte Rosa Therapeutics on December 11, 2024 and sell it today you would earn a total of 62.00 from holding Monte Rosa Therapeutics or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sage Therapeutic vs. Monte Rosa Therapeutics
Performance |
| Timeline |
| Sage Therapeutic |
| Monte Rosa Therapeutics |
Sage Therapeutic and Monte Rosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sage Therapeutic and Monte Rosa
The main advantage of trading using opposite Sage Therapeutic and Monte Rosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sage Therapeutic position performs unexpectedly, Monte Rosa 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 Monte Rosa will offset losses from the drop in Monte Rosa's long position.| Sage Therapeutic vs. Apellis Pharmaceuticals | ||
| Sage Therapeutic vs. Terns Pharmaceuticals | ||
| Sage Therapeutic vs. Day One Biopharmaceuticals | ||
| Sage Therapeutic vs. Blueprint Medicines Corp |
| Monte Rosa vs. Nkarta Inc | ||
| Monte Rosa vs. Lyell Immunopharma | ||
| Monte Rosa vs. Generation Bio Co | ||
| Monte Rosa vs. Sana Biotechnology |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |