Correlation Between Alexion Pharmaceuticals and BeiGene
Can any of the company-specific risk be diversified away by investing in both Alexion Pharmaceuticals and BeiGene 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 Alexion Pharmaceuticals and BeiGene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexion Pharmaceuticals and BeiGene, you can compare the effects of market volatilities on Alexion Pharmaceuticals and BeiGene 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 Alexion Pharmaceuticals with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexion Pharmaceuticals and BeiGene.
Diversification Opportunities for Alexion Pharmaceuticals and BeiGene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alexion and BeiGene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alexion Pharmaceuticals and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Alexion Pharmaceuticals 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 Alexion Pharmaceuticals are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Alexion Pharmaceuticals i.e., Alexion Pharmaceuticals and BeiGene go up and down completely randomly.
Pair Corralation between Alexion Pharmaceuticals and BeiGene
If you would invest 16,248 in BeiGene on September 3, 2024 and sell it today you would earn a total of 5,252 from holding BeiGene or generate 32.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alexion Pharmaceuticals vs. BeiGene
Performance |
| Timeline |
| Alexion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BeiGene |
Alexion Pharmaceuticals and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexion Pharmaceuticals and BeiGene
The main advantage of trading using opposite Alexion Pharmaceuticals and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexion Pharmaceuticals position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Alexion Pharmaceuticals vs. Tyson Foods | Alexion Pharmaceuticals vs. Procter Gamble | Alexion Pharmaceuticals vs. FitLife Brands, Common | Alexion Pharmaceuticals vs. Sable Offshore Corp |
| BeiGene vs. Ascendis Pharma AS | BeiGene vs. Apellis Pharmaceuticals | BeiGene vs. Akero Therapeutics | BeiGene vs. Blueprint Medicines Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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