Correlation Between Aeterna Zentaris and Aditxt
Can any of the company-specific risk be diversified away by investing in both Aeterna Zentaris and Aditxt 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 Aeterna Zentaris and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeterna Zentaris and Aditxt Inc, you can compare the effects of market volatilities on Aeterna Zentaris and Aditxt 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 Aeterna Zentaris with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeterna Zentaris and Aditxt.
Diversification Opportunities for Aeterna Zentaris and Aditxt
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aeterna and Aditxt is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aeterna Zentaris and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Aeterna Zentaris 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 Aeterna Zentaris are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Aeterna Zentaris i.e., Aeterna Zentaris and Aditxt go up and down completely randomly.
Pair Corralation between Aeterna Zentaris and Aditxt
Given the investment horizon of 90 days Aeterna Zentaris is expected to generate 0.67 times more return on investment than Aditxt. However, Aeterna Zentaris is 1.49 times less risky than Aditxt. It trades about -0.06 of its potential returns per unit of risk. Aditxt Inc is currently generating about -0.34 per unit of risk. If you would invest 859.00 in Aeterna Zentaris on September 1, 2024 and sell it today you would lose (245.00) from holding Aeterna Zentaris or give up 28.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 38.89% |
| Values | Daily Returns |
Aeterna Zentaris vs. Aditxt Inc
Performance |
| Timeline |
| Aeterna Zentaris |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aditxt Inc |
Aeterna Zentaris and Aditxt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeterna Zentaris and Aditxt
The main advantage of trading using opposite Aeterna Zentaris and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeterna Zentaris position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.| Aeterna Zentaris vs. Pulmatrix | Aeterna Zentaris vs. Bio Path Holdings | Aeterna Zentaris vs. Moleculin Biotech | Aeterna Zentaris vs. Adial Pharmaceuticals |
| Aditxt vs. Neurobo Pharmaceuticals | Aditxt vs. Dermata Therapeutics | Aditxt vs. Unicycive Therapeutics | Aditxt vs. Revelation Biosciences |
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.
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