Correlation Between Zura Bio and Stoke Therapeutics
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and Stoke Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Stoke Therapeutics, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of Stoke Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Stoke Therapeutics.
Diversification Opportunities for Zura Bio and Stoke Therapeutics
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zura and Stoke is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Stoke Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoke Therapeutics and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Stoke Therapeutics go up and down completely randomly.
Pair Corralation between Zura Bio and Stoke Therapeutics
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Stoke Therapeutics. In addition to that, Zura Bio is 1.17 times more volatile than Stoke Therapeutics. It trades about -0.08 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 1,407 in Stoke Therapeutics on August 24, 2024 and sell it today you would lose (280.00) from holding Stoke Therapeutics or give up 19.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zura Bio Limited vs. Stoke Therapeutics
Performance |
| Timeline |
| Zura Bio Limited |
| Stoke Therapeutics |
Zura Bio and Stoke Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Stoke Therapeutics
The main advantage of trading using opposite Zura Bio and Stoke Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Volaris | Zura Bio vs. Western Acquisition Ventures | Zura Bio vs. SFL Corporation | Zura Bio vs. Mesa Air Group |
| Stoke Therapeutics vs. ZyVersa Therapeutics | Stoke Therapeutics vs. Sonnet Biotherapeutics Holdings | Stoke Therapeutics vs. Zura Bio Limited | Stoke Therapeutics vs. Phio Pharmaceuticals Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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