Correlation Between Windtree Therapeutics and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Windtree 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 Windtree 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 Windtree Therapeutics and Stoke Therapeutics, you can compare the effects of market volatilities on Windtree 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 Windtree Therapeutics with a short position of Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Windtree Therapeutics and Stoke Therapeutics.
Diversification Opportunities for Windtree Therapeutics and Stoke Therapeutics
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Windtree and Stoke is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Windtree Therapeutics and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics 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 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 Windtree Therapeutics i.e., Windtree Therapeutics and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Windtree Therapeutics and Stoke Therapeutics
Given the investment horizon of 90 days Windtree Therapeutics is expected to under-perform the Stoke Therapeutics. In addition to that, Windtree Therapeutics is 2.87 times more volatile than Stoke Therapeutics. It trades about -0.22 of its total potential returns per unit of risk. Stoke Therapeutics is currently generating about -0.07 per unit of volatility. If you would invest 1,503 in Stoke Therapeutics on September 2, 2024 and sell it today you would lose (292.00) from holding Stoke Therapeutics or give up 19.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Windtree Therapeutics vs. Stoke Therapeutics
Performance |
| Timeline |
| Windtree Therapeutics |
| Stoke Therapeutics |
Windtree Therapeutics and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Windtree Therapeutics and Stoke Therapeutics
The main advantage of trading using opposite Windtree Therapeutics and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Windtree 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.| Windtree Therapeutics vs. Neurobo Pharmaceuticals | Windtree Therapeutics vs. Palisade Bio | Windtree Therapeutics vs. Lixte Biotechnology Holdings | Windtree Therapeutics vs. Avenue Therapeutics |
| Stoke Therapeutics vs. Tff Pharmaceuticals | Stoke Therapeutics vs. Eliem Therapeutics | Stoke Therapeutics vs. Inhibrx | Stoke Therapeutics vs. Enliven Therapeutics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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