Correlation Between Amylyx Pharmaceuticals and Protalix Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Amylyx Pharmaceuticals and Protalix Biotherapeutics 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 Protalix Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amylyx Pharmaceuticals and Protalix Biotherapeutics, you can compare the effects of market volatilities on Amylyx Pharmaceuticals and Protalix Biotherapeutics 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 Protalix Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amylyx Pharmaceuticals and Protalix Biotherapeutics.
Diversification Opportunities for Amylyx Pharmaceuticals and Protalix Biotherapeutics
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amylyx and Protalix is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Protalix Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protalix Biotherapeutics 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 Protalix Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protalix Biotherapeutics has no effect on the direction of Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Protalix Biotherapeutics go up and down completely randomly.
Pair Corralation between Amylyx Pharmaceuticals and Protalix Biotherapeutics
Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to under-perform the Protalix Biotherapeutics. In addition to that, Amylyx Pharmaceuticals is 1.37 times more volatile than Protalix Biotherapeutics. It trades about -0.02 of its total potential returns per unit of risk. Protalix Biotherapeutics is currently generating about 0.02 per unit of volatility. If you would invest 160.00 in Protalix Biotherapeutics on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Protalix Biotherapeutics or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amylyx Pharmaceuticals vs. Protalix Biotherapeutics
Performance |
| Timeline |
| Amylyx Pharmaceuticals |
| Protalix Biotherapeutics |
Amylyx Pharmaceuticals and Protalix Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amylyx Pharmaceuticals and Protalix Biotherapeutics
The main advantage of trading using opposite Amylyx Pharmaceuticals and Protalix Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amylyx Pharmaceuticals position performs unexpectedly, Protalix Biotherapeutics 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 Protalix Biotherapeutics will offset losses from the drop in Protalix Biotherapeutics' long position.| Amylyx Pharmaceuticals vs. Terns Pharmaceuticals | Amylyx Pharmaceuticals vs. Acumen Pharmaceuticals | Amylyx Pharmaceuticals vs. Inozyme Pharma | Amylyx Pharmaceuticals vs. X4 Pharmaceuticals |
| Protalix Biotherapeutics vs. DiaMedica Therapeutics | Protalix Biotherapeutics vs. Lyra Therapeutics | Protalix Biotherapeutics vs. Centessa Pharmaceuticals PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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