Correlation Between DMTKQ and Tela Bio

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

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

Diversification Opportunities for DMTKQ and Tela Bio

0.0

Correlation Coefficient

DMTKQ  Tela Bio

Pay attention - limited upside

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

Pair Corralation between DMTKQ and Tela Bio

If you would invest  97.00  in Tela Bio on May 6, 2025 and sell it today you would earn a total of  89.00  from holding Tela Bio or generate 91.75% return on investment over 90 days.

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

DMTKQ  vs.  Tela Bio

DMTKQ

Risk-Adjusted Performance

Very Weak

Over the last 90 days DMTKQ has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, DMTKQ is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Tela Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tela Bio are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Tela Bio sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DMTKQ and Tela Bio

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

The idea behind DMTKQ and Tela 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.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.