Correlation Between Shattuck Labs and Werewolf Therapeutics
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs and Werewolf 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 Werewolf 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 Werewolf Therapeutics, you can compare the effects of market volatilities on Shattuck Labs and Werewolf 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 Werewolf Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Werewolf Therapeutics.
Diversification Opportunities for Shattuck Labs and Werewolf Therapeutics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shattuck and Werewolf is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Werewolf Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Werewolf 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 Werewolf Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Werewolf Therapeutics has no effect on the direction of Shattuck Labs i.e., Shattuck Labs and Werewolf Therapeutics go up and down completely randomly.
Pair Corralation between Shattuck Labs and Werewolf Therapeutics
Given the investment horizon of 90 days Shattuck Labs is expected to generate 1.04 times more return on investment than Werewolf Therapeutics. However, Shattuck Labs is 1.04 times more volatile than Werewolf Therapeutics. It trades about -0.23 of its potential returns per unit of risk. Werewolf Therapeutics is currently generating about -0.31 per unit of risk. If you would invest 136.00 in Shattuck Labs on August 28, 2024 and sell it today you would lose (35.00) from holding Shattuck Labs or give up 25.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shattuck Labs vs. Werewolf Therapeutics
Performance |
| Timeline |
| Shattuck Labs |
| Werewolf Therapeutics |
Shattuck Labs and Werewolf Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Werewolf Therapeutics
The main advantage of trading using opposite Shattuck Labs and Werewolf Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs position performs unexpectedly, Werewolf 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 Werewolf Therapeutics will offset losses from the drop in Werewolf Therapeutics' long position.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics |
| Werewolf Therapeutics vs. Eliem Therapeutics | Werewolf Therapeutics vs. HCW Biologics | Werewolf Therapeutics vs. Scpharmaceuticals | Werewolf Therapeutics vs. Milestone 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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