Correlation Between Stoke Therapeutics and Genenta Science
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Genenta Science 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 Genenta Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Genenta Science SpA, you can compare the effects of market volatilities on Stoke Therapeutics and Genenta Science 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 Genenta Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Genenta Science.
Diversification Opportunities for Stoke Therapeutics and Genenta Science
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stoke and Genenta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Genenta Science SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genenta Science SpA 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 Genenta Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genenta Science SpA has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Genenta Science go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Genenta Science
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 1.05 times more return on investment than Genenta Science. However, Stoke Therapeutics is 1.05 times more volatile than Genenta Science SpA. It trades about 0.09 of its potential returns per unit of risk. Genenta Science SpA is currently generating about 0.03 per unit of risk. If you would invest 431.00 in Stoke Therapeutics on September 1, 2024 and sell it today you would earn a total of 780.00 from holding Stoke Therapeutics or generate 180.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.03% |
| Values | Daily Returns |
Stoke Therapeutics vs. Genenta Science SpA
Performance |
| Timeline |
| Stoke Therapeutics |
| Genenta Science SpA |
Stoke Therapeutics and Genenta Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Genenta Science
The main advantage of trading using opposite Stoke Therapeutics and Genenta Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Genenta Science 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 Genenta Science will offset losses from the drop in Genenta Science'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 |
| Genenta Science vs. Molecular Partners AG | Genenta Science vs. MediciNova | Genenta Science vs. Anebulo Pharmaceuticals | Genenta Science vs. Champions Oncology |
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 Stocks Directory module to find actively traded stocks across global markets.
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