Correlation Between Alpha Cognition and ChitogenX
Can any of the company-specific risk be diversified away by investing in both Alpha Cognition and ChitogenX 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 Alpha Cognition and ChitogenX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Cognition and ChitogenX, you can compare the effects of market volatilities on Alpha Cognition and ChitogenX 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 Alpha Cognition with a short position of ChitogenX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Cognition and ChitogenX.
Diversification Opportunities for Alpha Cognition and ChitogenX
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alpha and ChitogenX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Cognition and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX and Alpha Cognition 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 Alpha Cognition are associated (or correlated) with ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Alpha Cognition i.e., Alpha Cognition and ChitogenX go up and down completely randomly.
Pair Corralation between Alpha Cognition and ChitogenX
Assuming the 90 days horizon Alpha Cognition is expected to under-perform the ChitogenX. In addition to that, Alpha Cognition is 16.06 times more volatile than ChitogenX. It trades about -0.05 of its total potential returns per unit of risk. ChitogenX is currently generating about -0.12 per unit of volatility. If you would invest 0.52 in ChitogenX on September 3, 2024 and sell it today you would lose (0.01) from holding ChitogenX or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alpha Cognition vs. ChitogenX
Performance |
| Timeline |
| Alpha Cognition |
| ChitogenX |
Alpha Cognition and ChitogenX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Cognition and ChitogenX
The main advantage of trading using opposite Alpha Cognition and ChitogenX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Cognition position performs unexpectedly, ChitogenX 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 ChitogenX will offset losses from the drop in ChitogenX's long position.| Alpha Cognition vs. Akeso, Inc | Alpha Cognition vs. Avax Techs | Alpha Cognition vs. Transgene SA | Alpha Cognition vs. Fennec Pharmaceuticals |
| ChitogenX vs. Therapeutic Solutions International | ChitogenX vs. Alpha Cognition | ChitogenX vs. Vg Life Sciences | ChitogenX vs. Adagene |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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