Correlation Between Satsuma Pharmaceuticals and Vaccinex
Can any of the company-specific risk be diversified away by investing in both Satsuma Pharmaceuticals and Vaccinex 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 Satsuma Pharmaceuticals and Vaccinex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satsuma Pharmaceuticals and Vaccinex, you can compare the effects of market volatilities on Satsuma Pharmaceuticals and Vaccinex 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 Satsuma Pharmaceuticals with a short position of Vaccinex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satsuma Pharmaceuticals and Vaccinex.
Diversification Opportunities for Satsuma Pharmaceuticals and Vaccinex
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Satsuma and Vaccinex is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Satsuma Pharmaceuticals and Vaccinex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaccinex and Satsuma Pharmaceuticals 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 Satsuma Pharmaceuticals are associated (or correlated) with Vaccinex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaccinex has no effect on the direction of Satsuma Pharmaceuticals i.e., Satsuma Pharmaceuticals and Vaccinex go up and down completely randomly.
Pair Corralation between Satsuma Pharmaceuticals and Vaccinex
Given the investment horizon of 90 days Satsuma Pharmaceuticals is expected to generate 0.98 times more return on investment than Vaccinex. However, Satsuma Pharmaceuticals is 1.03 times less risky than Vaccinex. It trades about 0.05 of its potential returns per unit of risk. Vaccinex is currently generating about -0.08 per unit of risk. If you would invest 95.00 in Satsuma Pharmaceuticals on October 21, 2024 and sell it today you would earn a total of 15.00 from holding Satsuma Pharmaceuticals or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 18.84% |
| Values | Daily Returns |
Satsuma Pharmaceuticals vs. Vaccinex
Performance |
| Timeline |
| Satsuma Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vaccinex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Satsuma Pharmaceuticals and Vaccinex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satsuma Pharmaceuticals and Vaccinex
The main advantage of trading using opposite Satsuma Pharmaceuticals and Vaccinex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satsuma Pharmaceuticals position performs unexpectedly, Vaccinex 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 Vaccinex will offset losses from the drop in Vaccinex's long position.| Satsuma Pharmaceuticals vs. Erasca Inc | Satsuma Pharmaceuticals vs. Forte Biosciences | Satsuma Pharmaceuticals vs. SAB Biotherapeutics | Satsuma Pharmaceuticals vs. Senti Biosciences |
| Vaccinex vs. Protara Therapeutics | Vaccinex vs. Monopar Therapeutics | Vaccinex vs. Surrozen | Vaccinex vs. Salarius 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance |