Correlation Between Sarepta Therapeutics and Global Power
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics and Global Power 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 Sarepta Therapeutics and Global Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and Global Power Equipment, you can compare the effects of market volatilities on Sarepta Therapeutics and Global Power 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 Sarepta Therapeutics with a short position of Global Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and Global Power.
Diversification Opportunities for Sarepta Therapeutics and Global Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sarepta and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and Global Power Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Power Equipment and Sarepta 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 Sarepta Therapeutics are associated (or correlated) with Global Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Power Equipment has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and Global Power go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and Global Power
If you would invest 7,016 in Sarepta Therapeutics on January 26, 2024 and sell it today you would earn a total of 5,409 from holding Sarepta Therapeutics or generate 77.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sarepta Therapeutics vs. Global Power Equipment
Performance |
| Timeline |
| Sarepta Therapeutics |
| Global Power Equipment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sarepta Therapeutics and Global Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and Global Power
The main advantage of trading using opposite Sarepta Therapeutics and Global Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics position performs unexpectedly, Global Power 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 Global Power will offset losses from the drop in Global Power's long position.| Sarepta Therapeutics vs. Terns Pharmaceuticals | Sarepta Therapeutics vs. Amylyx Pharmaceuticals | Sarepta Therapeutics vs. Acumen Pharmaceuticals | Sarepta Therapeutics vs. Inozyme PharmaInc |
| Global Power vs. Postal Realty Trust | Global Power vs. Hanover Foods | Global Power vs. BBB Foods | Global Power vs. Sligro Food Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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