Correlation Between Streamline Health and Werewolf Therapeutics

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

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

Diversification Opportunities for Streamline Health and Werewolf Therapeutics

0.44

Correlation Coefficient

Streamline Health  Werewolf Therapeutics

Very weak diversification

The 3 months correlation between Streamline and Werewolf is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Streamline Health Solutions and Werewolf Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Werewolf Therapeutics and Streamline Health 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 Streamline Health Solutions are associated (or correlated) with Werewolf Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Werewolf Therapeutics has no effect on the direction of Streamline Health i.e., Streamline Health and Werewolf Therapeutics go up and down completely randomly.

Pair Corralation between Streamline Health and Werewolf Therapeutics

Given the investment horizon of 90 days Streamline Health Solutions is expected to generate 3.15 times more return on investment than Werewolf Therapeutics. However, Streamline Health is 3.15 times more volatile than Werewolf Therapeutics. It trades about 0.13 of its potential returns per unit of risk. Werewolf Therapeutics is currently generating about 0.08 per unit of risk. If you would invest  225.00  in Streamline Health Solutions on May 16, 2025 and sell it today you would earn a total of  308.32  from holding Streamline Health Solutions or generate 137.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Streamline Health Solutions  vs.  Werewolf Therapeutics

Streamline Health

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Streamline Health Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Streamline Health displayed solid returns over the last few months and may actually be approaching a breakup point.

Werewolf Therapeutics

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Werewolf Therapeutics are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Werewolf Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Streamline Health and Werewolf Therapeutics

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

The idea behind Streamline Health Solutions and Werewolf 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.