Correlation Between Stoke Therapeutics and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Ascendis Pharma 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 Ascendis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Ascendis Pharma AS, you can compare the effects of market volatilities on Stoke Therapeutics and Ascendis Pharma 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 Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Ascendis Pharma.
Diversification Opportunities for Stoke Therapeutics and Ascendis Pharma
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stoke and Ascendis is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS 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 Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Ascendis Pharma
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 1.93 times more return on investment than Ascendis Pharma. However, Stoke Therapeutics is 1.93 times more volatile than Ascendis Pharma AS. It trades about 0.03 of its potential returns per unit of risk. Ascendis Pharma AS is currently generating about 0.03 per unit of risk. If you would invest 954.00 in Stoke Therapeutics on November 1, 2024 and sell it today you would earn a total of 145.00 from holding Stoke Therapeutics or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoke Therapeutics vs. Ascendis Pharma AS
Performance |
| Timeline |
| Stoke Therapeutics |
| Ascendis Pharma AS |
Stoke Therapeutics and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Ascendis Pharma
The main advantage of trading using opposite Stoke Therapeutics and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Ascendis Pharma 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Stoke Therapeutics vs. Surrozen | Stoke Therapeutics vs. Armata Pharmaceuticals | Stoke Therapeutics vs. Pasithea Therapeutics Corp | Stoke Therapeutics vs. Aditxt Inc |
| Ascendis Pharma vs. Apellis Pharmaceuticals | Ascendis Pharma vs. Akero Therapeutics | Ascendis Pharma vs. Blueprint Medicines Corp | Ascendis Pharma vs. Replimune Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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