Correlation Between Stoke Therapeutics and Amylyx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Amylyx 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 Stoke Therapeutics and Amylyx Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Amylyx Pharmaceuticals, you can compare the effects of market volatilities on Stoke Therapeutics and Amylyx 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 Stoke Therapeutics with a short position of Amylyx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Amylyx Pharmaceuticals.
Diversification Opportunities for Stoke Therapeutics and Amylyx Pharmaceuticals
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stoke and Amylyx is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Amylyx Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amylyx Pharmaceuticals 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 Amylyx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amylyx Pharmaceuticals has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Amylyx Pharmaceuticals go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Amylyx Pharmaceuticals
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 1.03 times more return on investment than Amylyx Pharmaceuticals. However, Stoke Therapeutics is 1.03 times more volatile than Amylyx Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. Amylyx Pharmaceuticals is currently generating about -0.02 per unit of risk. If you would invest 838.00 in Stoke Therapeutics on September 4, 2024 and sell it today you would earn a total of 369.00 from holding Stoke Therapeutics or generate 44.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoke Therapeutics vs. Amylyx Pharmaceuticals
Performance |
| Timeline |
| Stoke Therapeutics |
| Amylyx Pharmaceuticals |
Stoke Therapeutics and Amylyx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Amylyx Pharmaceuticals
The main advantage of trading using opposite Stoke Therapeutics and Amylyx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Amylyx 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 Amylyx Pharmaceuticals will offset losses from the drop in Amylyx Pharmaceuticals' long position.| Stoke Therapeutics vs. Candel Therapeutics | Stoke Therapeutics vs. Cingulate Warrants | Stoke Therapeutics vs. Unicycive Therapeutics | Stoke Therapeutics vs. Cardio Diagnostics Holdings |
| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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