Correlation Between Biocardia and Addex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Biocardia and Addex Therapeutics 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 Biocardia and Addex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biocardia and Addex Therapeutics, you can compare the effects of market volatilities on Biocardia and Addex Therapeutics 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 Biocardia with a short position of Addex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biocardia and Addex Therapeutics.
Diversification Opportunities for Biocardia and Addex Therapeutics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biocardia and Addex is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Biocardia and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics and Biocardia 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 Biocardia are associated (or correlated) with Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of Biocardia i.e., Biocardia and Addex Therapeutics go up and down completely randomly.
Pair Corralation between Biocardia and Addex Therapeutics
Given the investment horizon of 90 days Biocardia is expected to under-perform the Addex Therapeutics. In addition to that, Biocardia is 1.69 times more volatile than Addex Therapeutics. It trades about -0.02 of its total potential returns per unit of risk. Addex Therapeutics is currently generating about 0.02 per unit of volatility. If you would invest 1,321 in Addex Therapeutics on September 2, 2024 and sell it today you would lose (450.00) from holding Addex Therapeutics or give up 34.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biocardia vs. Addex Therapeutics
Performance |
| Timeline |
| Biocardia |
| Addex Therapeutics |
Biocardia and Addex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biocardia and Addex Therapeutics
The main advantage of trading using opposite Biocardia and Addex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biocardia position performs unexpectedly, Addex Therapeutics 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 Addex Therapeutics will offset losses from the drop in Addex Therapeutics' long position.| Biocardia vs. Aerovate Therapeutics | Biocardia vs. Adagene | Biocardia vs. Acrivon Therapeutics, Common | Biocardia vs. Rezolute |
| Addex Therapeutics vs. Innate Pharma | Addex Therapeutics vs. Aptorum Group Ltd | Addex Therapeutics vs. Dyadic International | Addex Therapeutics vs. Soligenix |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |