Correlation Between Solid Biosciences and Hookipa Pharma
Can any of the company-specific risk be diversified away by investing in both Solid Biosciences and Hookipa Pharma 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 Solid Biosciences and Hookipa Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Biosciences LLC and Hookipa Pharma, you can compare the effects of market volatilities on Solid Biosciences and Hookipa Pharma 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 Solid Biosciences with a short position of Hookipa Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Biosciences and Hookipa Pharma.
Diversification Opportunities for Solid Biosciences and Hookipa Pharma
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Solid and Hookipa is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Solid Biosciences LLC and Hookipa Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hookipa Pharma and Solid Biosciences 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 Solid Biosciences LLC are associated (or correlated) with Hookipa Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hookipa Pharma has no effect on the direction of Solid Biosciences i.e., Solid Biosciences and Hookipa Pharma go up and down completely randomly.
Pair Corralation between Solid Biosciences and Hookipa Pharma
Given the investment horizon of 90 days Solid Biosciences LLC is expected to generate 0.88 times more return on investment than Hookipa Pharma. However, Solid Biosciences LLC is 1.13 times less risky than Hookipa Pharma. It trades about 0.06 of its potential returns per unit of risk. Hookipa Pharma is currently generating about -0.36 per unit of risk. If you would invest 552.00 in Solid Biosciences LLC on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Solid Biosciences LLC or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Biosciences LLC vs. Hookipa Pharma
Performance |
| Timeline |
| Solid Biosciences LLC |
| Hookipa Pharma |
Solid Biosciences and Hookipa Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Biosciences and Hookipa Pharma
The main advantage of trading using opposite Solid Biosciences and Hookipa Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Biosciences position performs unexpectedly, Hookipa Pharma 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 Hookipa Pharma will offset losses from the drop in Hookipa Pharma's long position.| Solid Biosciences vs. Century Therapeutics | Solid Biosciences vs. Edgewise Therapeutics | Solid Biosciences vs. C4 Therapeutics | Solid Biosciences vs. Mineralys Therapeutics, Common |
| Hookipa Pharma vs. Tff Pharmaceuticals | Hookipa Pharma vs. Eliem Therapeutics | Hookipa Pharma vs. Inhibrx | Hookipa Pharma vs. Enliven 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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