Correlation Between Alexion Pharmaceuticals and WuXi Biologics
Can any of the company-specific risk be diversified away by investing in both Alexion Pharmaceuticals and WuXi Biologics 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 WuXi Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexion Pharmaceuticals and WuXi Biologics, you can compare the effects of market volatilities on Alexion Pharmaceuticals and WuXi Biologics 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 WuXi Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexion Pharmaceuticals and WuXi Biologics.
Diversification Opportunities for Alexion Pharmaceuticals and WuXi Biologics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alexion and WuXi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alexion Pharmaceuticals and WuXi Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Biologics 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 WuXi Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Biologics has no effect on the direction of Alexion Pharmaceuticals i.e., Alexion Pharmaceuticals and WuXi Biologics go up and down completely randomly.
Pair Corralation between Alexion Pharmaceuticals and WuXi Biologics
If you would invest 452.00 in WuXi Biologics on November 30, 2024 and sell it today you would earn a total of 118.00 from holding WuXi Biologics or generate 26.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alexion Pharmaceuticals vs. WuXi Biologics
Performance |
| Timeline |
| Alexion Pharmaceuticals |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| WuXi Biologics |
Alexion Pharmaceuticals and WuXi Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexion Pharmaceuticals and WuXi Biologics
The main advantage of trading using opposite Alexion Pharmaceuticals and WuXi Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexion Pharmaceuticals position performs unexpectedly, WuXi Biologics 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 WuXi Biologics will offset losses from the drop in WuXi Biologics' long position.| Alexion Pharmaceuticals vs. Sunlands Technology Group | Alexion Pharmaceuticals vs. Air Products and | Alexion Pharmaceuticals vs. Lindblad Expeditions Holdings | Alexion Pharmaceuticals vs. Ihuman Inc |
| WuXi Biologics vs. Inhibikase Therapeutics | WuXi Biologics vs. Corcept Therapeutics Incorporated | WuXi Biologics vs. Cardio Diagnostics Holdings | WuXi Biologics vs. Revolution Medicines |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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