Correlation Between RAPT Therapeutics and Stagwell
Can any of the company-specific risk be diversified away by investing in both RAPT Therapeutics and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RAPT Therapeutics and Stagwell, you can compare the effects of market volatilities on RAPT Therapeutics and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of RAPT Therapeutics and Stagwell.
Diversification Opportunities for RAPT Therapeutics and Stagwell
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RAPT and Stagwell is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding RAPT Therapeutics and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of RAPT Therapeutics i.e., RAPT Therapeutics and Stagwell go up and down completely randomly.
Pair Corralation between RAPT Therapeutics and Stagwell
Given the investment horizon of 90 days RAPT Therapeutics is expected to generate 2.03 times more return on investment than Stagwell. However, RAPT Therapeutics is 2.03 times more volatile than Stagwell. It trades about 0.28 of its potential returns per unit of risk. Stagwell is currently generating about 0.04 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RAPT Therapeutics vs. Stagwell
Performance |
| Timeline |
| RAPT Therapeutics |
| Stagwell |
RAPT Therapeutics and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RAPT Therapeutics and Stagwell
The main advantage of trading using opposite RAPT Therapeutics and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RAPT Therapeutics position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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