Correlation Between Shattuck Labs and Eliem Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs and Eliem 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 Shattuck Labs and Eliem Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Eliem Therapeutics, you can compare the effects of market volatilities on Shattuck Labs and Eliem 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 Shattuck Labs with a short position of Eliem Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Eliem Therapeutics.
Diversification Opportunities for Shattuck Labs and Eliem Therapeutics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shattuck and Eliem is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Eliem Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eliem Therapeutics and Shattuck Labs 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 Shattuck Labs are associated (or correlated) with Eliem Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eliem Therapeutics has no effect on the direction of Shattuck Labs i.e., Shattuck Labs and Eliem Therapeutics go up and down completely randomly.
Pair Corralation between Shattuck Labs and Eliem Therapeutics
Given the investment horizon of 90 days Shattuck Labs is expected to generate 1.89 times less return on investment than Eliem Therapeutics. In addition to that, Shattuck Labs is 1.27 times more volatile than Eliem Therapeutics. It trades about 0.01 of its total potential returns per unit of risk. Eliem Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 251.00 in Eliem Therapeutics on August 24, 2024 and sell it today you would earn a total of 49.00 from holding Eliem Therapeutics or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Eliem Therapeutics
Performance |
| Timeline |
| Shattuck Labs |
| Eliem Therapeutics |
Shattuck Labs and Eliem Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Eliem Therapeutics
The main advantage of trading using opposite Shattuck Labs and Eliem Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs position performs unexpectedly, Eliem 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 Eliem Therapeutics will offset losses from the drop in Eliem Therapeutics' long position.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics |
| Eliem Therapeutics vs. Pmv Pharmaceuticals | Eliem Therapeutics vs. MediciNova | Eliem Therapeutics vs. Pharvaris BV | Eliem Therapeutics vs. PepGen |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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