Correlation Between Ascelia Pharma and Annexin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Annexin 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 Ascelia Pharma and Annexin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascelia Pharma AB and Annexin Pharmaceuticals AB, you can compare the effects of market volatilities on Ascelia Pharma and Annexin 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 Ascelia Pharma with a short position of Annexin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Annexin Pharmaceuticals.
Diversification Opportunities for Ascelia Pharma and Annexin Pharmaceuticals
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascelia and Annexin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Annexin Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexin Pharmaceuticals and Ascelia Pharma 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 Ascelia Pharma AB are associated (or correlated) with Annexin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexin Pharmaceuticals has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Annexin Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Annexin Pharmaceuticals
Assuming the 90 days trading horizon Ascelia Pharma AB is expected to under-perform the Annexin Pharmaceuticals. In addition to that, Ascelia Pharma is 1.11 times more volatile than Annexin Pharmaceuticals AB. It trades about -0.12 of its total potential returns per unit of risk. Annexin Pharmaceuticals AB is currently generating about 0.05 per unit of volatility. If you would invest 42.00 in Annexin Pharmaceuticals AB on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Annexin Pharmaceuticals AB or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Annexin Pharmaceuticals AB
Performance |
| Timeline |
| Ascelia Pharma AB |
| Annexin Pharmaceuticals |
Ascelia Pharma and Annexin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Annexin Pharmaceuticals
The main advantage of trading using opposite Ascelia Pharma and Annexin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Annexin 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 Annexin Pharmaceuticals will offset losses from the drop in Annexin Pharmaceuticals' long position.| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
| Annexin Pharmaceuticals vs. Cantargia AB | Annexin Pharmaceuticals vs. Biovica International AB | Annexin Pharmaceuticals vs. Ascelia Pharma AB | Annexin Pharmaceuticals vs. Cyxone 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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