Correlation Between Tela Bio and Phathom Pharmaceuticals

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

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

Diversification Opportunities for Tela Bio and Phathom Pharmaceuticals

-0.72

Correlation Coefficient

Tela Bio  Phathom Pharmaceuticals

Pay attention - limited upside

The 3 months correlation between Tela and Phathom is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tela Bio and Phathom Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phathom Pharmaceuticals and Tela Bio 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 Tela Bio are associated (or correlated) with Phathom Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phathom Pharmaceuticals has no effect on the direction of Tela Bio i.e., Tela Bio and Phathom Pharmaceuticals go up and down completely randomly.

Pair Corralation between Tela Bio and Phathom Pharmaceuticals

Given the investment horizon of 90 days Tela Bio is expected to under-perform the Phathom Pharmaceuticals. In addition to that, Tela Bio is 1.21 times more volatile than Phathom Pharmaceuticals. It trades about -0.06 of its total potential returns per unit of risk. Phathom Pharmaceuticals is currently generating about 0.13 per unit of volatility. If you would invest  891.00  in Phathom Pharmaceuticals on July 2, 2025 and sell it today you would earn a total of  286.00  from holding Phathom Pharmaceuticals or generate 32.1% return on investment over 90 days.

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

Tela Bio  vs.  Phathom Pharmaceuticals

Tela Bio

Risk-Adjusted Performance

Weakest

Over the last 90 days Tela Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Phathom Pharmaceuticals

Risk-Adjusted Performance

Fair

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

Pair Trading with Tela Bio and Phathom Pharmaceuticals

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

The idea behind Tela Bio and Phathom Pharmaceuticals 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.