Correlation Between Ascelia Pharma and Elicera Therapeutics
Can any of the company-specific risk be diversified away by investing in both Ascelia Pharma and Elicera Therapeutics 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 Elicera Therapeutics 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 Elicera Therapeutics AB, you can compare the effects of market volatilities on Ascelia Pharma and Elicera Therapeutics 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 Elicera Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascelia Pharma and Elicera Therapeutics.
Diversification Opportunities for Ascelia Pharma and Elicera Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascelia and Elicera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ascelia Pharma AB and Elicera Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elicera Therapeutics 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 Elicera Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elicera Therapeutics has no effect on the direction of Ascelia Pharma i.e., Ascelia Pharma and Elicera Therapeutics go up and down completely randomly.
Pair Corralation between Ascelia Pharma and Elicera Therapeutics
Assuming the 90 days trading horizon Ascelia Pharma is expected to generate 12.77 times less return on investment than Elicera Therapeutics. But when comparing it to its historical volatility, Ascelia Pharma AB is 1.66 times less risky than Elicera Therapeutics. It trades about 0.04 of its potential returns per unit of risk. Elicera Therapeutics AB is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Elicera Therapeutics AB on October 25, 2024 and sell it today you would earn a total of 77.00 from holding Elicera Therapeutics AB or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascelia Pharma AB vs. Elicera Therapeutics AB
Performance |
| Timeline |
| Ascelia Pharma AB |
| Elicera Therapeutics |
Ascelia Pharma and Elicera Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascelia Pharma and Elicera Therapeutics
The main advantage of trading using opposite Ascelia Pharma and Elicera Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascelia Pharma position performs unexpectedly, Elicera Therapeutics 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 Elicera Therapeutics will offset losses from the drop in Elicera Therapeutics' long position.| Ascelia Pharma vs. Hansa Biopharma AB | Ascelia Pharma vs. Cantargia AB | Ascelia Pharma vs. Saniona AB | Ascelia Pharma vs. BioArctic AB |
| Elicera Therapeutics vs. Idogen AB | Elicera Therapeutics vs. Combigene AB | Elicera Therapeutics vs. Fluicell 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |