Correlation Between Shattuck Labs and NextCure
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs and NextCure 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 NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and NextCure, you can compare the effects of market volatilities on Shattuck Labs and NextCure 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 NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and NextCure.
Diversification Opportunities for Shattuck Labs and NextCure
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shattuck and NextCure is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure 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 NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Shattuck Labs i.e., Shattuck Labs and NextCure go up and down completely randomly.
Pair Corralation between Shattuck Labs and NextCure
Given the investment horizon of 90 days Shattuck Labs is expected to under-perform the NextCure. In addition to that, Shattuck Labs is 1.27 times more volatile than NextCure. It trades about -0.16 of its total potential returns per unit of risk. NextCure is currently generating about -0.14 per unit of volatility. If you would invest 136.00 in NextCure on August 29, 2024 and sell it today you would lose (19.00) from holding NextCure or give up 13.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. NextCure
Performance |
| Timeline |
| Shattuck Labs |
| NextCure |
Shattuck Labs and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and NextCure
The main advantage of trading using opposite Shattuck Labs and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Eliem Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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