Correlation Between Summit Therapeutics and FinTech Evolution
Can any of the company-specific risk be diversified away by investing in both Summit Therapeutics and FinTech Evolution 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 Summit Therapeutics and FinTech Evolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Therapeutics PLC and FinTech Evolution Acquisition, you can compare the effects of market volatilities on Summit Therapeutics and FinTech Evolution 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 Summit Therapeutics with a short position of FinTech Evolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Therapeutics and FinTech Evolution.
Diversification Opportunities for Summit Therapeutics and FinTech Evolution
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and FinTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Therapeutics PLC and FinTech Evolution Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinTech Evolution and Summit 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 Summit Therapeutics PLC are associated (or correlated) with FinTech Evolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinTech Evolution has no effect on the direction of Summit Therapeutics i.e., Summit Therapeutics and FinTech Evolution go up and down completely randomly.
Pair Corralation between Summit Therapeutics and FinTech Evolution
If you would invest 1,996 in Summit Therapeutics PLC on November 2, 2024 and sell it today you would earn a total of 240.00 from holding Summit Therapeutics PLC or generate 12.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Summit Therapeutics PLC vs. FinTech Evolution Acquisition
Performance |
| Timeline |
| Summit Therapeutics PLC |
| FinTech Evolution |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Therapeutics and FinTech Evolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Therapeutics and FinTech Evolution
The main advantage of trading using opposite Summit Therapeutics and FinTech Evolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Therapeutics position performs unexpectedly, FinTech Evolution 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 FinTech Evolution will offset losses from the drop in FinTech Evolution's long position.| Summit Therapeutics vs. Nkarta Inc | Summit Therapeutics vs. Cullinan Oncology LLC | Summit Therapeutics vs. Kezar Life Sciences | Summit Therapeutics vs. Kronos Bio |
| FinTech Evolution vs. Monster Beverage Corp | FinTech Evolution vs. Ambev SA ADR | FinTech Evolution vs. The Coca Cola | FinTech Evolution vs. NorthWestern |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| 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 | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |