Correlation Between Alimera Sciences and Athenex
Can any of the company-specific risk be diversified away by investing in both Alimera Sciences and Athenex 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 Alimera Sciences and Athenex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alimera Sciences and Athenex, you can compare the effects of market volatilities on Alimera Sciences and Athenex 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 Alimera Sciences with a short position of Athenex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alimera Sciences and Athenex.
Diversification Opportunities for Alimera Sciences and Athenex
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alimera and Athenex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Alimera Sciences and Athenex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athenex and Alimera Sciences 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 Alimera Sciences are associated (or correlated) with Athenex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athenex has no effect on the direction of Alimera Sciences i.e., Alimera Sciences and Athenex go up and down completely randomly.
Pair Corralation between Alimera Sciences and Athenex
If you would invest 0.22 in Athenex on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Athenex or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alimera Sciences vs. Athenex
Performance |
| Timeline |
| Alimera Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Athenex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alimera Sciences and Athenex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alimera Sciences and Athenex
The main advantage of trading using opposite Alimera Sciences and Athenex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimera Sciences position performs unexpectedly, Athenex 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 Athenex will offset losses from the drop in Athenex's long position.| Alimera Sciences vs. Shuttle Pharmaceuticals | Alimera Sciences vs. Lifecore Biomedical | Alimera Sciences vs. Journey Medical Corp | Alimera Sciences vs. Organogenesis Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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