Correlation Between Sarepta Therapeutics and Inhibikase Therapeutics
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Inhibikase 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 Sarepta Therapeutics and Inhibikase Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Inhibikase Therapeutics, you can compare the effects of market volatilities on Sarepta Therapeutics and Inhibikase 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 Sarepta Therapeutics with a short position of Inhibikase Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Inhibikase Therapeutics.
Diversification Opportunities for Sarepta Therapeutics and Inhibikase Therapeutics
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sarepta and Inhibikase is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Inhibikase Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibikase Therapeutics and Sarepta 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 Sarepta Therapeutics are associated (or correlated) with Inhibikase Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibikase Therapeutics has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Inhibikase Therapeutics go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Inhibikase Therapeutics
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 4.12 times less return on investment than Inhibikase Therapeutics. But when comparing it to its historical volatility, Sarepta Therapeutics is 2.22 times less risky than Inhibikase Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Inhibikase Therapeutics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Inhibikase Therapeutics on September 14, 2024 and sell it today you would earn a total of 198.50 from holding Inhibikase Therapeutics or generate 143.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sarepta Therapeutics vs. Inhibikase Therapeutics
Performance |
| Timeline |
| Sarepta Therapeutics |
| Inhibikase Therapeutics |
Sarepta Therapeutics and Inhibikase Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Inhibikase Therapeutics
The main advantage of trading using opposite Sarepta Therapeutics and Inhibikase Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Inhibikase 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 Inhibikase Therapeutics will offset losses from the drop in Inhibikase Therapeutics' long position.| Sarepta Therapeutics vs. Puma Biotechnology | Sarepta Therapeutics vs. Iovance Biotherapeutics | Sarepta Therapeutics vs. Day One Biopharmaceuticals | Sarepta Therapeutics vs. Inozyme Pharma |
| Inhibikase Therapeutics vs. Puma Biotechnology | Inhibikase Therapeutics vs. Iovance Biotherapeutics | Inhibikase Therapeutics vs. Day One Biopharmaceuticals | Inhibikase Therapeutics vs. Inozyme Pharma |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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