Correlation Between WUXI BIOLOGICS and Moderna
Can any of the company-specific risk be diversified away by investing in both WUXI BIOLOGICS and Moderna 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 WUXI BIOLOGICS and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WUXI BIOLOGICS UNSPADR2 and Moderna, you can compare the effects of market volatilities on WUXI BIOLOGICS and Moderna 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 WUXI BIOLOGICS with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of WUXI BIOLOGICS and Moderna.
Diversification Opportunities for WUXI BIOLOGICS and Moderna
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WUXI and Moderna is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding WUXI BIOLOGICS UNSPADR2 and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and WUXI BIOLOGICS 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 WUXI BIOLOGICS UNSPADR2 are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of WUXI BIOLOGICS i.e., WUXI BIOLOGICS and Moderna go up and down completely randomly.
Pair Corralation between WUXI BIOLOGICS and Moderna
Assuming the 90 days trading horizon WUXI BIOLOGICS UNSPADR2 is expected to generate 0.74 times more return on investment than Moderna. However, WUXI BIOLOGICS UNSPADR2 is 1.35 times less risky than Moderna. It trades about -0.28 of its potential returns per unit of risk. Moderna is currently generating about -0.22 per unit of risk. If you would invest 434.00 in WUXI BIOLOGICS UNSPADR2 on August 29, 2024 and sell it today you would lose (84.00) from holding WUXI BIOLOGICS UNSPADR2 or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WUXI BIOLOGICS UNSPADR2 vs. Moderna
Performance |
| Timeline |
| WUXI BIOLOGICS UNSPADR2 |
| Moderna |
WUXI BIOLOGICS and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WUXI BIOLOGICS and Moderna
The main advantage of trading using opposite WUXI BIOLOGICS and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WUXI BIOLOGICS position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| WUXI BIOLOGICS vs. Superior Plus Corp | WUXI BIOLOGICS vs. NMI Holdings | WUXI BIOLOGICS vs. Origin Agritech | WUXI BIOLOGICS vs. SIVERS SEMICONDUCTORS AB |
| Moderna vs. Superior Plus Corp | Moderna vs. NMI Holdings | Moderna vs. Origin Agritech | Moderna vs. SIVERS SEMICONDUCTORS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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