Correlation Between Abeona Therapeutics and Galmed Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics and Galmed 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 Abeona Therapeutics and Galmed Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abeona Therapeutics and Galmed Pharmaceuticals, you can compare the effects of market volatilities on Abeona Therapeutics and Galmed 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 Abeona Therapeutics with a short position of Galmed Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and Galmed Pharmaceuticals.
Diversification Opportunities for Abeona Therapeutics and Galmed Pharmaceuticals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Abeona and Galmed is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and Galmed Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galmed Pharmaceuticals and Abeona Therapeutics 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 Abeona Therapeutics are associated (or correlated) with Galmed Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galmed Pharmaceuticals has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and Galmed Pharmaceuticals go up and down completely randomly.
Pair Corralation between Abeona Therapeutics and Galmed Pharmaceuticals
Given the investment horizon of 90 days Abeona Therapeutics is expected to generate 0.33 times more return on investment than Galmed Pharmaceuticals. However, Abeona Therapeutics is 3.02 times less risky than Galmed Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Galmed Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 312.00 in Abeona Therapeutics on August 30, 2024 and sell it today you would earn a total of 329.00 from holding Abeona Therapeutics or generate 105.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Abeona Therapeutics vs. Galmed Pharmaceuticals
Performance |
| Timeline |
| Abeona Therapeutics |
| Galmed Pharmaceuticals |
Abeona Therapeutics and Galmed Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abeona Therapeutics and Galmed Pharmaceuticals
The main advantage of trading using opposite Abeona Therapeutics and Galmed Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics position performs unexpectedly, Galmed 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 Galmed Pharmaceuticals will offset losses from the drop in Galmed Pharmaceuticals' long position.| Abeona Therapeutics vs. Bright Minds Biosciences | Abeona Therapeutics vs. HP Inc | Abeona Therapeutics vs. Intel | Abeona Therapeutics vs. Chevron Corp |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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