Correlation Between Avenue Therapeutics and ContraFect Corp
Can any of the company-specific risk be diversified away by investing in both Avenue Therapeutics and ContraFect Corp 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 Avenue Therapeutics and ContraFect Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avenue Therapeutics and ContraFect Corp, you can compare the effects of market volatilities on Avenue Therapeutics and ContraFect Corp 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 Avenue Therapeutics with a short position of ContraFect Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avenue Therapeutics and ContraFect Corp.
Diversification Opportunities for Avenue Therapeutics and ContraFect Corp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avenue and ContraFect is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Avenue Therapeutics and ContraFect Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ContraFect Corp and Avenue Therapeutics 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 Avenue Therapeutics are associated (or correlated) with ContraFect Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ContraFect Corp has no effect on the direction of Avenue Therapeutics i.e., Avenue Therapeutics and ContraFect Corp go up and down completely randomly.
Pair Corralation between Avenue Therapeutics and ContraFect Corp
If you would invest 118.00 in ContraFect Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding ContraFect Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Avenue Therapeutics vs. ContraFect Corp
Performance |
| Timeline |
| Avenue Therapeutics |
| ContraFect Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avenue Therapeutics and ContraFect Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avenue Therapeutics and ContraFect Corp
The main advantage of trading using opposite Avenue Therapeutics and ContraFect Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avenue Therapeutics position performs unexpectedly, ContraFect Corp 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 ContraFect Corp will offset losses from the drop in ContraFect Corp's long position.| Avenue Therapeutics vs. Capricor Therapeutics | Avenue Therapeutics vs. Akari Therapeutics PLC | Avenue Therapeutics vs. Soleno Therapeutics | Avenue Therapeutics vs. Bio Path Holdings |
| ContraFect Corp vs. Palisade Bio | ContraFect Corp vs. Allarity Therapeutics | ContraFect Corp vs. Cns Pharmaceuticals | ContraFect Corp vs. Windtree Therapeutics |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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