Correlation Between Assembly Biosciences and Graphite Bio

Can any of the company-specific risk be diversified away by investing in both Assembly Biosciences and Graphite Bio 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 Assembly Biosciences and Graphite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Assembly Biosciences and Graphite Bio, you can compare the effects of market volatilities on Assembly Biosciences and Graphite Bio 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 Assembly Biosciences with a short position of Graphite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assembly Biosciences and Graphite Bio.

Diversification Opportunities for Assembly Biosciences and Graphite Bio

0.0

Correlation Coefficient

Assembly Biosciences  Graphite Bio

Pay attention - limited upside

The 3 months correlation between Assembly and Graphite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Assembly Biosciences and Graphite Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite Bio and Assembly Biosciences 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 Assembly Biosciences are associated (or correlated) with Graphite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite Bio has no effect on the direction of Assembly Biosciences i.e., Assembly Biosciences and Graphite Bio go up and down completely randomly.

Pair Corralation between Assembly Biosciences and Graphite Bio

If you would invest  1,380  in Assembly Biosciences on May 18, 2025 and sell it today you would earn a total of  1,164  from holding Assembly Biosciences or generate 84.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Assembly Biosciences  vs.  Graphite Bio

Assembly Biosciences

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Assembly Biosciences are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Assembly Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Graphite Bio

Risk-Adjusted Performance

Weakest

Over the last 90 days Graphite Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Graphite Bio is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Assembly Biosciences and Graphite Bio

The main advantage of trading using opposite Assembly Biosciences and Graphite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assembly Biosciences position performs unexpectedly, Graphite Bio 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 Graphite Bio will offset losses from the drop in Graphite Bio's long position.

The idea behind Assembly Biosciences and Graphite Bio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.