Correlation Between Windtree Therapeutics and Gracell Biotechnologies
Can any of the company-specific risk be diversified away by investing in both Windtree Therapeutics and Gracell Biotechnologies 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 Windtree Therapeutics and Gracell Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Windtree Therapeutics and Gracell Biotechnologies, you can compare the effects of market volatilities on Windtree Therapeutics and Gracell Biotechnologies 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 Windtree Therapeutics with a short position of Gracell Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Windtree Therapeutics and Gracell Biotechnologies.
Diversification Opportunities for Windtree Therapeutics and Gracell Biotechnologies
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Windtree and Gracell is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Windtree Therapeutics and Gracell Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gracell Biotechnologies and Windtree 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 Windtree Therapeutics are associated (or correlated) with Gracell Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gracell Biotechnologies has no effect on the direction of Windtree Therapeutics i.e., Windtree Therapeutics and Gracell Biotechnologies go up and down completely randomly.
Pair Corralation between Windtree Therapeutics and Gracell Biotechnologies
If you would invest 402.00 in Gracell Biotechnologies on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Gracell Biotechnologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Windtree Therapeutics vs. Gracell Biotechnologies
Performance |
| Timeline |
| Windtree Therapeutics |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Windtree Therapeutics and Gracell Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Windtree Therapeutics and Gracell Biotechnologies
The main advantage of trading using opposite Windtree Therapeutics and Gracell Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Windtree Therapeutics position performs unexpectedly, Gracell Biotechnologies 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 Gracell Biotechnologies will offset losses from the drop in Gracell Biotechnologies' long position.| Windtree Therapeutics vs. Neurobo Pharmaceuticals | Windtree Therapeutics vs. Palisade Bio | Windtree Therapeutics vs. Lixte Biotechnology Holdings | Windtree Therapeutics vs. Avenue Therapeutics |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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