Correlation Between Stoke Therapeutics and Chimerix
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Chimerix 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 Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Chimerix, you can compare the effects of market volatilities on Stoke Therapeutics and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Chimerix.
Diversification Opportunities for Stoke Therapeutics and Chimerix
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stoke and Chimerix is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Chimerix go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Chimerix
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 10.86 times less return on investment than Chimerix. In addition to that, Stoke Therapeutics is 1.51 times more volatile than Chimerix. It trades about 0.01 of its total potential returns per unit of risk. Chimerix is currently generating about 0.24 per unit of volatility. If you would invest 348.00 in Chimerix on November 1, 2024 and sell it today you would earn a total of 62.00 from holding Chimerix or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoke Therapeutics vs. Chimerix
Performance |
| Timeline |
| Stoke Therapeutics |
| Chimerix |
Stoke Therapeutics and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Chimerix
The main advantage of trading using opposite Stoke Therapeutics and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Stoke Therapeutics vs. Surrozen | Stoke Therapeutics vs. Armata Pharmaceuticals | Stoke Therapeutics vs. Pasithea Therapeutics Corp | Stoke Therapeutics vs. Aditxt Inc |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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