Correlation Between Summit Therapeutics and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Summit Therapeutics and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Summit Therapeutics and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Therapeutics and SHUAA Partners.
Diversification Opportunities for Summit Therapeutics and SHUAA Partners
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and SHUAA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Therapeutics PLC and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Summit Therapeutics i.e., Summit Therapeutics and SHUAA Partners go up and down completely randomly.
Pair Corralation between Summit Therapeutics and SHUAA Partners
If you would invest 450.00 in Summit Therapeutics PLC on November 5, 2024 and sell it today you would earn a total of 1,548 from holding Summit Therapeutics PLC or generate 344.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
Summit Therapeutics PLC vs. SHUAA Partners Acquisition
Performance |
| Timeline |
| Summit Therapeutics PLC |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Therapeutics and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Therapeutics and SHUAA Partners
The main advantage of trading using opposite Summit Therapeutics and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Therapeutics position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Summit Therapeutics vs. Nkarta Inc | Summit Therapeutics vs. Cullinan Oncology LLC | Summit Therapeutics vs. Kezar Life Sciences | Summit Therapeutics vs. Kronos Bio |
| SHUAA Partners vs. PennantPark Floating Rate | SHUAA Partners vs. Astral Foods Limited | SHUAA Partners vs. Romana Food Brands | SHUAA Partners vs. Fidus Investment Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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