Correlation Between Surrozen and Armata Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Surrozen and Armata Pharmaceuticals 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 Surrozen and Armata Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surrozen and Armata Pharmaceuticals, you can compare the effects of market volatilities on Surrozen and Armata Pharmaceuticals 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 Surrozen with a short position of Armata Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surrozen and Armata Pharmaceuticals.
Diversification Opportunities for Surrozen and Armata Pharmaceuticals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Surrozen and Armata is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Surrozen and Armata Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armata Pharmaceuticals and Surrozen 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 Surrozen are associated (or correlated) with Armata Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armata Pharmaceuticals has no effect on the direction of Surrozen i.e., Surrozen and Armata Pharmaceuticals go up and down completely randomly.
Pair Corralation between Surrozen and Armata Pharmaceuticals
Given the investment horizon of 90 days Surrozen is expected to generate 1.67 times more return on investment than Armata Pharmaceuticals. However, Surrozen is 1.67 times more volatile than Armata Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Armata Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 1,062 in Surrozen on November 2, 2024 and sell it today you would earn a total of 145.00 from holding Surrozen or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Surrozen vs. Armata Pharmaceuticals
Performance |
| Timeline |
| Surrozen |
| Armata Pharmaceuticals |
Surrozen and Armata Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surrozen and Armata Pharmaceuticals
The main advantage of trading using opposite Surrozen and Armata Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surrozen position performs unexpectedly, Armata Pharmaceuticals 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 Armata Pharmaceuticals will offset losses from the drop in Armata Pharmaceuticals' long position.| Surrozen vs. Bolt Biotherapeutics | Surrozen vs. Larimar Therapeutics | Surrozen vs. Keros Therapeutics | Surrozen vs. Kezar Life Sciences |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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