Correlation Between EirGenix and PharmaEngine
Can any of the company-specific risk be diversified away by investing in both EirGenix and PharmaEngine 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 EirGenix and PharmaEngine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EirGenix and PharmaEngine, you can compare the effects of market volatilities on EirGenix and PharmaEngine 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 EirGenix with a short position of PharmaEngine. Check out your portfolio center. Please also check ongoing floating volatility patterns of EirGenix and PharmaEngine.
Diversification Opportunities for EirGenix and PharmaEngine
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EirGenix and PharmaEngine is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding EirGenix and PharmaEngine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaEngine and EirGenix 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 EirGenix are associated (or correlated) with PharmaEngine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaEngine has no effect on the direction of EirGenix i.e., EirGenix and PharmaEngine go up and down completely randomly.
Pair Corralation between EirGenix and PharmaEngine
Assuming the 90 days trading horizon EirGenix is expected to generate 0.52 times more return on investment than PharmaEngine. However, EirGenix is 1.93 times less risky than PharmaEngine. It trades about -0.01 of its potential returns per unit of risk. PharmaEngine is currently generating about -0.13 per unit of risk. If you would invest 8,950 in EirGenix on August 29, 2024 and sell it today you would lose (50.00) from holding EirGenix or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EirGenix vs. PharmaEngine
Performance |
| Timeline |
| EirGenix |
| PharmaEngine |
EirGenix and PharmaEngine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EirGenix and PharmaEngine
The main advantage of trading using opposite EirGenix and PharmaEngine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EirGenix position performs unexpectedly, PharmaEngine 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 PharmaEngine will offset losses from the drop in PharmaEngine's long position.| EirGenix vs. Elan Microelectronics Corp | EirGenix vs. Oceanic Beverages Co | EirGenix vs. Ambassador Hotel | EirGenix vs. Chung Lien Transportation |
| PharmaEngine vs. TaiMed Biologics | PharmaEngine vs. OBI Pharma | PharmaEngine vs. TTY Biopharm Co | PharmaEngine vs. Medigen Biotechnology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |