Correlation Between Summit Therapeutics and STANLN
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By analyzing existing cross correlation between Summit Therapeutics PLC and STANLN 6301 09 JAN 29, you can compare the effects of market volatilities on Summit Therapeutics and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Therapeutics and STANLN.
Diversification Opportunities for Summit Therapeutics and STANLN
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and STANLN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Summit Therapeutics PLC and STANLN 6301 09 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 6301 09 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 6301 09 has no effect on the direction of Summit Therapeutics i.e., Summit Therapeutics and STANLN go up and down completely randomly.
Pair Corralation between Summit Therapeutics and STANLN
Given the investment horizon of 90 days Summit Therapeutics PLC is expected to generate 31.46 times more return on investment than STANLN. However, Summit Therapeutics is 31.46 times more volatile than STANLN 6301 09 JAN 29. It trades about 0.17 of its potential returns per unit of risk. STANLN 6301 09 JAN 29 is currently generating about 0.14 per unit of risk. If you would invest 1,824 in Summit Therapeutics PLC on November 4, 2024 and sell it today you would earn a total of 326.00 from holding Summit Therapeutics PLC or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Summit Therapeutics PLC vs. STANLN 6301 09 JAN 29
Performance |
| Timeline |
| Summit Therapeutics PLC |
| STANLN 6301 09 |
Summit Therapeutics and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Therapeutics and STANLN
The main advantage of trading using opposite Summit Therapeutics and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Therapeutics position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN'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 |
| STANLN vs. Cheche Group Class | STANLN vs. Reservoir Media | STANLN vs. Imax Corp | STANLN vs. Zoom Video Communications |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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