Correlation Between Amylyx Pharmaceuticals and Elutia
Can any of the company-specific risk be diversified away by investing in both Amylyx Pharmaceuticals and Elutia 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 Amylyx Pharmaceuticals and Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amylyx Pharmaceuticals and Elutia Inc, you can compare the effects of market volatilities on Amylyx Pharmaceuticals and Elutia 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 Amylyx Pharmaceuticals with a short position of Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amylyx Pharmaceuticals and Elutia.
Diversification Opportunities for Amylyx Pharmaceuticals and Elutia
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amylyx and Elutia is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc and Amylyx 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 Amylyx Pharmaceuticals are associated (or correlated) with Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Elutia go up and down completely randomly.
Pair Corralation between Amylyx Pharmaceuticals and Elutia
Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to under-perform the Elutia. But the etf apears to be less risky and, when comparing its historical volatility, Amylyx Pharmaceuticals is 1.11 times less risky than Elutia. The etf trades about -0.02 of its potential returns per unit of risk. The Elutia Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Elutia Inc on August 24, 2024 and sell it today you would earn a total of 79.00 from holding Elutia Inc or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amylyx Pharmaceuticals vs. Elutia Inc
Performance |
| Timeline |
| Amylyx Pharmaceuticals |
| Elutia Inc |
Amylyx Pharmaceuticals and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amylyx Pharmaceuticals and Elutia
The main advantage of trading using opposite Amylyx Pharmaceuticals and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amylyx Pharmaceuticals position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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