Correlation Between Stoke Therapeutics and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Affimed NV 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 Stoke Therapeutics and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Affimed NV, you can compare the effects of market volatilities on Stoke Therapeutics and Affimed NV 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 Stoke Therapeutics with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Affimed NV.
Diversification Opportunities for Stoke Therapeutics and Affimed NV
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stoke and Affimed is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Stoke 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 Stoke Therapeutics are associated (or correlated) with Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Affimed NV go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Affimed NV
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 1.01 times more return on investment than Affimed NV. However, Stoke Therapeutics is 1.01 times more volatile than Affimed NV. It trades about 0.09 of its potential returns per unit of risk. Affimed NV is currently generating about -0.01 per unit of risk. If you would invest 405.00 in Stoke Therapeutics on August 24, 2024 and sell it today you would earn a total of 726.00 from holding Stoke Therapeutics or generate 179.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Stoke Therapeutics vs. Affimed NV
Performance |
| Timeline |
| Stoke Therapeutics |
| Affimed NV |
Stoke Therapeutics and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Affimed NV
The main advantage of trading using opposite Stoke Therapeutics and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Stoke Therapeutics vs. Adaptimmune Therapeutics Plc | Stoke Therapeutics vs. Black Diamond Therapeutics | Stoke Therapeutics vs. Relay Therapeutics | Stoke Therapeutics vs. Pliant Therapeutics |
| Affimed NV vs. Lyra Therapeutics | Affimed NV vs. Hookipa Pharma | Affimed NV vs. Cingulate Warrants | Affimed NV vs. SAB Biotherapeutics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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