Correlation Between TG Therapeutics and Cognition Therapeutics
Can any of the company-specific risk be diversified away by investing in both TG Therapeutics and Cognition 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 TG Therapeutics and Cognition Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TG Therapeutics and Cognition Therapeutics, you can compare the effects of market volatilities on TG Therapeutics and Cognition 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 TG Therapeutics with a short position of Cognition Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TG Therapeutics and Cognition Therapeutics.
Diversification Opportunities for TG Therapeutics and Cognition Therapeutics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between TGTX and Cognition is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TG Therapeutics and Cognition Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognition Therapeutics and TG 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 TG Therapeutics are associated (or correlated) with Cognition Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognition Therapeutics has no effect on the direction of TG Therapeutics i.e., TG Therapeutics and Cognition Therapeutics go up and down completely randomly.
Pair Corralation between TG Therapeutics and Cognition Therapeutics
Given the investment horizon of 90 days TG Therapeutics is expected to generate 0.93 times more return on investment than Cognition Therapeutics. However, TG Therapeutics is 1.08 times less risky than Cognition Therapeutics. It trades about 0.35 of its potential returns per unit of risk. Cognition Therapeutics is currently generating about -0.16 per unit of risk. If you would invest 2,336 in TG Therapeutics on August 26, 2024 and sell it today you would earn a total of 1,171 from holding TG Therapeutics or generate 50.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TG Therapeutics vs. Cognition Therapeutics
Performance |
| Timeline |
| TG Therapeutics |
| Cognition Therapeutics |
TG Therapeutics and Cognition Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TG Therapeutics and Cognition Therapeutics
The main advantage of trading using opposite TG Therapeutics and Cognition Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TG Therapeutics position performs unexpectedly, Cognition 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 Cognition Therapeutics will offset losses from the drop in Cognition Therapeutics' long position.| TG Therapeutics vs. Madrigal Pharmaceuticals | TG Therapeutics vs. Terns Pharmaceuticals | TG Therapeutics vs. Hepion Pharmaceuticals | TG Therapeutics vs. Exelixis |
| Cognition Therapeutics vs. Reviva Pharmaceuticals Holdings | Cognition Therapeutics vs. Eyenovia | Cognition Therapeutics vs. Transcode Therapeutics | Cognition Therapeutics vs. Kodiak Sciences |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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