Correlation Between RAPT Therapeutics and Roivant Sciences
Can any of the company-specific risk be diversified away by investing in both RAPT Therapeutics and Roivant Sciences 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 RAPT Therapeutics and Roivant Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAPT Therapeutics and Roivant Sciences, you can compare the effects of market volatilities on RAPT Therapeutics and Roivant Sciences 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 RAPT Therapeutics with a short position of Roivant Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAPT Therapeutics and Roivant Sciences.
Diversification Opportunities for RAPT Therapeutics and Roivant Sciences
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RAPT and Roivant is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding RAPT Therapeutics and Roivant Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roivant Sciences and RAPT 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 RAPT Therapeutics are associated (or correlated) with Roivant Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roivant Sciences has no effect on the direction of RAPT Therapeutics i.e., RAPT Therapeutics and Roivant Sciences go up and down completely randomly.
Pair Corralation between RAPT Therapeutics and Roivant Sciences
Given the investment horizon of 90 days RAPT Therapeutics is expected to generate 3.15 times more return on investment than Roivant Sciences. However, RAPT Therapeutics is 3.15 times more volatile than Roivant Sciences. It trades about 0.27 of its potential returns per unit of risk. Roivant Sciences is currently generating about 0.31 per unit of risk. If you would invest 1,061 in RAPT Therapeutics on July 15, 2025 and sell it today you would earn a total of 1,574 from holding RAPT Therapeutics or generate 148.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RAPT Therapeutics vs. Roivant Sciences
Performance |
| Timeline |
| RAPT Therapeutics |
| Roivant Sciences |
RAPT Therapeutics and Roivant Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RAPT Therapeutics and Roivant Sciences
The main advantage of trading using opposite RAPT Therapeutics and Roivant Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAPT Therapeutics position performs unexpectedly, Roivant Sciences 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 Roivant Sciences will offset losses from the drop in Roivant Sciences' long position.| RAPT Therapeutics vs. Edgewise Therapeutics | RAPT Therapeutics vs. Fulcrum Therapeutics | RAPT Therapeutics vs. Keros Therapeutics | RAPT Therapeutics vs. Phathom Pharmaceuticals |
| Roivant Sciences vs. Arbutus Biopharma Corp | Roivant Sciences vs. Immunovant | Roivant Sciences vs. Arcutis Biotherapeutics | Roivant Sciences vs. Legend Biotech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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