Correlation Between Aerovate Therapeutics and Champions Oncology
Can any of the company-specific risk be diversified away by investing in both Aerovate Therapeutics and Champions Oncology 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 Aerovate Therapeutics and Champions Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerovate Therapeutics and Champions Oncology, you can compare the effects of market volatilities on Aerovate Therapeutics and Champions Oncology 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 Aerovate Therapeutics with a short position of Champions Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerovate Therapeutics and Champions Oncology.
Diversification Opportunities for Aerovate Therapeutics and Champions Oncology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aerovate and Champions is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aerovate Therapeutics and Champions Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champions Oncology and Aerovate 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 Aerovate Therapeutics are associated (or correlated) with Champions Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champions Oncology has no effect on the direction of Aerovate Therapeutics i.e., Aerovate Therapeutics and Champions Oncology go up and down completely randomly.
Pair Corralation between Aerovate Therapeutics and Champions Oncology
Given the investment horizon of 90 days Aerovate Therapeutics is expected to under-perform the Champions Oncology. In addition to that, Aerovate Therapeutics is 1.76 times more volatile than Champions Oncology. It trades about 0.0 of its total potential returns per unit of risk. Champions Oncology is currently generating about 0.08 per unit of volatility. If you would invest 607.00 in Champions Oncology on November 3, 2024 and sell it today you would earn a total of 492.00 from holding Champions Oncology or generate 81.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aerovate Therapeutics vs. Champions Oncology
Performance |
| Timeline |
| Aerovate Therapeutics |
| Champions Oncology |
Aerovate Therapeutics and Champions Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerovate Therapeutics and Champions Oncology
The main advantage of trading using opposite Aerovate Therapeutics and Champions Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerovate Therapeutics position performs unexpectedly, Champions Oncology 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 Champions Oncology will offset losses from the drop in Champions Oncology's long position.| Aerovate Therapeutics vs. Adagene | Aerovate Therapeutics vs. Acrivon Therapeutics, Common | Aerovate Therapeutics vs. Rezolute | Aerovate Therapeutics vs. AN2 Therapeutics |
| Champions Oncology vs. Molecular Partners AG | Champions Oncology vs. MediciNova | Champions Oncology vs. Anebulo Pharmaceuticals | Champions Oncology vs. Shattuck Labs |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |