Correlation Between 4D Molecular and Autolus Therapeutics

Can any of the company-specific risk be diversified away by investing in both 4D Molecular and Autolus 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 4D Molecular and Autolus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 4D Molecular Therapeutics and Autolus Therapeutics, you can compare the effects of market volatilities on 4D Molecular and Autolus 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 4D Molecular with a short position of Autolus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4D Molecular and Autolus Therapeutics.

Diversification Opportunities for 4D Molecular and Autolus Therapeutics

0.14

Correlation Coefficient

4D Molecular  Autolus Therapeutics

Average diversification

The 3 months correlation between FDMT and Autolus is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding 4D Molecular Therapeutics and Autolus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autolus Therapeutics and 4D Molecular 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 4D Molecular Therapeutics are associated (or correlated) with Autolus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autolus Therapeutics has no effect on the direction of 4D Molecular i.e., 4D Molecular and Autolus Therapeutics go up and down completely randomly.

Pair Corralation between 4D Molecular and Autolus Therapeutics

Given the investment horizon of 90 days 4D Molecular Therapeutics is expected to generate 1.0 times more return on investment than Autolus Therapeutics. However, 4D Molecular Therapeutics is 1.0 times less risky than Autolus Therapeutics. It trades about 0.16 of its potential returns per unit of risk. Autolus Therapeutics is currently generating about 0.06 per unit of risk. If you would invest  697.00  in 4D Molecular Therapeutics on September 9, 2025 and sell it today you would earn a total of  424.00  from holding 4D Molecular Therapeutics or generate 60.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

4D Molecular Therapeutics  vs.  Autolus Therapeutics

4D Molecular Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 4D Molecular Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal primary indicators, 4D Molecular unveiled solid returns over the last few months and may actually be approaching a breakup point.

Autolus Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Autolus Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Autolus Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 4D Molecular and Autolus Therapeutics

The main advantage of trading using opposite 4D Molecular and Autolus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4D Molecular position performs unexpectedly, Autolus 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 Autolus Therapeutics will offset losses from the drop in Autolus Therapeutics' long position.

The idea behind 4D Molecular Therapeutics and Autolus Therapeutics 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 Stocks Directory module to find actively traded stocks across global markets.