Correlation Between Viking Therapeutics and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Viking Therapeutics and Stoke 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 Viking Therapeutics and Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Therapeutics and Stoke Therapeutics, you can compare the effects of market volatilities on Viking Therapeutics and Stoke 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 Viking Therapeutics with a short position of Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Therapeutics and Stoke Therapeutics.
Diversification Opportunities for Viking Therapeutics and Stoke Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Viking and Stoke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Viking Therapeutics and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics and Viking 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 Viking Therapeutics are associated (or correlated) with Stoke Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoke Therapeutics has no effect on the direction of Viking Therapeutics i.e., Viking Therapeutics and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Viking Therapeutics and Stoke Therapeutics
Given the investment horizon of 90 days Viking Therapeutics is expected to under-perform the Stoke Therapeutics. In addition to that, Viking Therapeutics is 1.28 times more volatile than Stoke Therapeutics. It trades about -0.26 of its total potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.03 per unit of volatility. If you would invest 1,240 in Stoke Therapeutics on August 30, 2024 and sell it today you would lose (49.00) from holding Stoke Therapeutics or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Viking Therapeutics vs. Stoke Therapeutics
Performance |
| Timeline |
| Viking Therapeutics |
| Stoke Therapeutics |
Viking Therapeutics and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Therapeutics and Stoke Therapeutics
The main advantage of trading using opposite Viking Therapeutics and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Therapeutics position performs unexpectedly, Stoke 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 Stoke Therapeutics will offset losses from the drop in Stoke Therapeutics' long position.| Viking Therapeutics vs. Terns Pharmaceuticals | Viking Therapeutics vs. Akero Therapeutics | Viking Therapeutics vs. Madrigal Pharmaceuticals | Viking Therapeutics vs. Sarepta Therapeutics |
| Stoke Therapeutics vs. Ikena Oncology | Stoke Therapeutics vs. Eliem Therapeutics | Stoke Therapeutics vs. HCW Biologics | Stoke Therapeutics vs. RenovoRx |
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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