Correlation Between Stoke Therapeutics and Windtree Therapeutics
Can any of the company-specific risk be diversified away by investing in both Stoke Therapeutics and Windtree Therapeutics 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 Windtree Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoke Therapeutics and Windtree Therapeutics, you can compare the effects of market volatilities on Stoke Therapeutics and Windtree Therapeutics 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 Windtree Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoke Therapeutics and Windtree Therapeutics.
Diversification Opportunities for Stoke Therapeutics and Windtree Therapeutics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stoke and Windtree is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and Windtree Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Windtree Therapeutics 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 Windtree Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Windtree Therapeutics has no effect on the direction of Stoke Therapeutics i.e., Stoke Therapeutics and Windtree Therapeutics go up and down completely randomly.
Pair Corralation between Stoke Therapeutics and Windtree Therapeutics
Given the investment horizon of 90 days Stoke Therapeutics is expected to generate 0.35 times more return on investment than Windtree Therapeutics. However, Stoke Therapeutics is 2.87 times less risky than Windtree Therapeutics. It trades about -0.07 of its potential returns per unit of risk. Windtree Therapeutics is currently generating about -0.22 per unit of risk. If you would invest 1,503 in Stoke Therapeutics on September 2, 2024 and sell it today you would lose (292.00) from holding Stoke Therapeutics or give up 19.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoke Therapeutics vs. Windtree Therapeutics
Performance |
| Timeline |
| Stoke Therapeutics |
| Windtree Therapeutics |
Stoke Therapeutics and Windtree Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoke Therapeutics and Windtree Therapeutics
The main advantage of trading using opposite Stoke Therapeutics and Windtree Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoke Therapeutics position performs unexpectedly, Windtree Therapeutics 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 Windtree Therapeutics will offset losses from the drop in Windtree Therapeutics' long position.| Stoke Therapeutics vs. Tff Pharmaceuticals | Stoke Therapeutics vs. Eliem Therapeutics | Stoke Therapeutics vs. Inhibrx | Stoke Therapeutics vs. Enliven Therapeutics |
| Windtree Therapeutics vs. Neurobo Pharmaceuticals | Windtree Therapeutics vs. Palisade Bio | Windtree Therapeutics vs. Lixte Biotechnology Holdings | Windtree Therapeutics vs. Avenue Therapeutics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |