Correlation Between National Research and Werewolf Therapeutics
Can any of the company-specific risk be diversified away by investing in both National Research and Werewolf 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 National Research and Werewolf Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Research Corp and Werewolf Therapeutics, you can compare the effects of market volatilities on National Research and Werewolf 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 National Research with a short position of Werewolf Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Research and Werewolf Therapeutics.
Diversification Opportunities for National Research and Werewolf Therapeutics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Werewolf is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding National Research Corp and Werewolf Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Werewolf Therapeutics and National Research 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 National Research Corp are associated (or correlated) with Werewolf Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Werewolf Therapeutics has no effect on the direction of National Research i.e., National Research and Werewolf Therapeutics go up and down completely randomly.
Pair Corralation between National Research and Werewolf Therapeutics
Considering the 90-day investment horizon National Research Corp is expected to generate 0.63 times more return on investment than Werewolf Therapeutics. However, National Research Corp is 1.59 times less risky than Werewolf Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Werewolf Therapeutics is currently generating about 0.02 per unit of risk. If you would invest 1,399 in National Research Corp on June 4, 2025 and sell it today you would earn a total of 70.00 from holding National Research Corp or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Research Corp vs. Werewolf Therapeutics
Performance |
| Timeline |
| National Research Corp |
| Werewolf Therapeutics |
National Research and Werewolf Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Research and Werewolf Therapeutics
The main advantage of trading using opposite National Research and Werewolf Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Research position performs unexpectedly, Werewolf 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 Werewolf Therapeutics will offset losses from the drop in Werewolf Therapeutics' long position.| National Research vs. PC Connection | National Research vs. Definitive Healthcare Corp | National Research vs. HealthStream | National Research vs. NI Holdings |
| Werewolf Therapeutics vs. Edgewise Therapeutics | Werewolf Therapeutics vs. Design Therapeutics | Werewolf Therapeutics vs. Xilio Development | Werewolf Therapeutics vs. Climb Bio |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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