Correlation Between Fulcrum Therapeutics and RAPT Therapeutics
Can any of the company-specific risk be diversified away by investing in both Fulcrum Therapeutics and RAPT 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 Fulcrum Therapeutics and RAPT Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Therapeutics and RAPT Therapeutics, you can compare the effects of market volatilities on Fulcrum Therapeutics and RAPT 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 Fulcrum Therapeutics with a short position of RAPT Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Therapeutics and RAPT Therapeutics.
Diversification Opportunities for Fulcrum Therapeutics and RAPT Therapeutics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fulcrum and RAPT is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Therapeutics and RAPT Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAPT Therapeutics and Fulcrum 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 Fulcrum Therapeutics are associated (or correlated) with RAPT Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAPT Therapeutics has no effect on the direction of Fulcrum Therapeutics i.e., Fulcrum Therapeutics and RAPT Therapeutics go up and down completely randomly.
Pair Corralation between Fulcrum Therapeutics and RAPT Therapeutics
Given the investment horizon of 90 days Fulcrum Therapeutics is expected to generate 3.54 times less return on investment than RAPT Therapeutics. But when comparing it to its historical volatility, Fulcrum Therapeutics is 1.37 times less risky than RAPT Therapeutics. It trades about 0.11 of its potential returns per unit of risk. RAPT Therapeutics is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,170 in RAPT Therapeutics on July 20, 2025 and sell it today you would earn a total of 1,764 from holding RAPT Therapeutics or generate 150.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulcrum Therapeutics vs. RAPT Therapeutics
Performance |
| Timeline |
| Fulcrum Therapeutics |
| RAPT Therapeutics |
Fulcrum Therapeutics and RAPT Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Therapeutics and RAPT Therapeutics
The main advantage of trading using opposite Fulcrum Therapeutics and RAPT Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Therapeutics position performs unexpectedly, RAPT 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 RAPT Therapeutics will offset losses from the drop in RAPT Therapeutics' long position.| Fulcrum Therapeutics vs. Neurogene | Fulcrum Therapeutics vs. Solid Biosciences LLC | Fulcrum Therapeutics vs. 4D Molecular Therapeutics | Fulcrum Therapeutics vs. ADC Therapeutics SA |
| RAPT Therapeutics vs. DBV Technologies | RAPT Therapeutics vs. Autolus Therapeutics | RAPT Therapeutics vs. Rocket Pharmaceuticals | RAPT Therapeutics vs. MBX Biosciences, Common |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |