Correlation Between Scpharmaceuticals and Cytokinetics
Can any of the company-specific risk be diversified away by investing in both Scpharmaceuticals and Cytokinetics 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 Scpharmaceuticals and Cytokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scpharmaceuticals and Cytokinetics, you can compare the effects of market volatilities on Scpharmaceuticals and Cytokinetics 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 Scpharmaceuticals with a short position of Cytokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scpharmaceuticals and Cytokinetics.
Diversification Opportunities for Scpharmaceuticals and Cytokinetics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scpharmaceuticals and Cytokinetics is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Scpharmaceuticals and Cytokinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytokinetics and Scpharmaceuticals 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 Scpharmaceuticals are associated (or correlated) with Cytokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytokinetics has no effect on the direction of Scpharmaceuticals i.e., Scpharmaceuticals and Cytokinetics go up and down completely randomly.
Pair Corralation between Scpharmaceuticals and Cytokinetics
Given the investment horizon of 90 days Scpharmaceuticals is expected to under-perform the Cytokinetics. In addition to that, Scpharmaceuticals is 1.64 times more volatile than Cytokinetics. It trades about 0.0 of its total potential returns per unit of risk. Cytokinetics is currently generating about 0.02 per unit of volatility. If you would invest 4,821 in Cytokinetics on August 26, 2024 and sell it today you would earn a total of 89.00 from holding Cytokinetics or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scpharmaceuticals vs. Cytokinetics
Performance |
| Timeline |
| Scpharmaceuticals |
| Cytokinetics |
Scpharmaceuticals and Cytokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scpharmaceuticals and Cytokinetics
The main advantage of trading using opposite Scpharmaceuticals and Cytokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scpharmaceuticals position performs unexpectedly, Cytokinetics 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 Cytokinetics will offset losses from the drop in Cytokinetics' long position.| Scpharmaceuticals vs. Milestone Pharmaceuticals | Scpharmaceuticals vs. Oncolytics Biotech | Scpharmaceuticals vs. Seres Therapeutics | Scpharmaceuticals vs. DiaMedica Therapeutics |
| Cytokinetics vs. Eliem Therapeutics | Cytokinetics vs. HCW Biologics | Cytokinetics vs. Scpharmaceuticals | Cytokinetics vs. Milestone Pharmaceuticals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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