Correlation Between Sellas Life and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Marker Therapeutics 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 Sellas Life and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Marker Therapeutics, you can compare the effects of market volatilities on Sellas Life and Marker Therapeutics 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 Sellas Life with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Marker Therapeutics.
Diversification Opportunities for Sellas Life and Marker Therapeutics
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sellas and Marker is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of Sellas Life i.e., Sellas Life and Marker Therapeutics go up and down completely randomly.
Pair Corralation between Sellas Life and Marker Therapeutics
Considering the 90-day investment horizon Sellas Life Sciences is expected to under-perform the Marker Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Sellas Life Sciences is 1.36 times less risky than Marker Therapeutics. The stock trades about -0.43 of its potential returns per unit of risk. The Marker Therapeutics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Marker Therapeutics on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Marker Therapeutics or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sellas Life Sciences vs. Marker Therapeutics
Performance |
| Timeline |
| Sellas Life Sciences |
| Marker Therapeutics |
Sellas Life and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Marker Therapeutics
The main advantage of trading using opposite Sellas Life and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Marker Therapeutics 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| Marker Therapeutics vs. Lumos Pharma | Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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