Correlation Between Apellis Pharmaceuticals and BGNE Old
Can any of the company-specific risk be diversified away by investing in both Apellis Pharmaceuticals and BGNE Old 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 Apellis Pharmaceuticals and BGNE Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apellis Pharmaceuticals and BGNE Old, you can compare the effects of market volatilities on Apellis Pharmaceuticals and BGNE Old 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 Apellis Pharmaceuticals with a short position of BGNE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apellis Pharmaceuticals and BGNE Old.
Diversification Opportunities for Apellis Pharmaceuticals and BGNE Old
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apellis and BGNE is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Apellis Pharmaceuticals and BGNE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGNE Old and Apellis 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 Apellis Pharmaceuticals are associated (or correlated) with BGNE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGNE Old has no effect on the direction of Apellis Pharmaceuticals i.e., Apellis Pharmaceuticals and BGNE Old go up and down completely randomly.
Pair Corralation between Apellis Pharmaceuticals and BGNE Old
Given the investment horizon of 90 days Apellis Pharmaceuticals is expected to under-perform the BGNE Old. In addition to that, Apellis Pharmaceuticals is 1.23 times more volatile than BGNE Old. It trades about -0.08 of its total potential returns per unit of risk. BGNE Old is currently generating about 0.05 per unit of volatility. If you would invest 14,776 in BGNE Old on November 3, 2024 and sell it today you would earn a total of 3,695 from holding BGNE Old or generate 25.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Apellis Pharmaceuticals vs. BGNE Old
Performance |
| Timeline |
| Apellis Pharmaceuticals |
| BGNE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apellis Pharmaceuticals and BGNE Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apellis Pharmaceuticals and BGNE Old
The main advantage of trading using opposite Apellis Pharmaceuticals and BGNE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apellis Pharmaceuticals position performs unexpectedly, BGNE Old 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 BGNE Old will offset losses from the drop in BGNE Old's long position.| Apellis Pharmaceuticals vs. Akero Therapeutics | Apellis Pharmaceuticals vs. Immunovant | Apellis Pharmaceuticals vs. Madrigal Pharmaceuticals | Apellis Pharmaceuticals vs. Day One Biopharmaceuticals |
| BGNE Old vs. Ascendis Pharma AS | BGNE Old vs. Apellis Pharmaceuticals | BGNE Old vs. Akero Therapeutics | BGNE Old 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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