Correlation Between Apexigen and Eton Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Apexigen and Eton Pharmaceuticals 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 Apexigen and Eton Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apexigen and Eton Pharmaceuticals, you can compare the effects of market volatilities on Apexigen and Eton Pharmaceuticals 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 Apexigen with a short position of Eton Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apexigen and Eton Pharmaceuticals.
Diversification Opportunities for Apexigen and Eton Pharmaceuticals
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apexigen and Eton is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Apexigen and Eton Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eton Pharmaceuticals and Apexigen 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 Apexigen are associated (or correlated) with Eton Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eton Pharmaceuticals has no effect on the direction of Apexigen i.e., Apexigen and Eton Pharmaceuticals go up and down completely randomly.
Pair Corralation between Apexigen and Eton Pharmaceuticals
If you would invest 811.00 in Eton Pharmaceuticals on October 25, 2024 and sell it today you would earn a total of 813.00 from holding Eton Pharmaceuticals or generate 100.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Apexigen vs. Eton Pharmaceuticals
Performance |
| Timeline |
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eton Pharmaceuticals |
Apexigen and Eton Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apexigen and Eton Pharmaceuticals
The main advantage of trading using opposite Apexigen and Eton Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apexigen position performs unexpectedly, Eton Pharmaceuticals 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 Eton Pharmaceuticals will offset losses from the drop in Eton Pharmaceuticals' long position.| Apexigen vs. Leap Therapeutics | Apexigen vs. Zura Bio Limited | Apexigen vs. X4 Pharmaceuticals | Apexigen vs. Phio Pharmaceuticals Corp |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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