Correlation Between BGNE Old and Apellis Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BGNE Old and Apellis 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 BGNE Old and Apellis Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGNE Old and Apellis Pharmaceuticals, you can compare the effects of market volatilities on BGNE Old and Apellis 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 BGNE Old with a short position of Apellis Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGNE Old and Apellis Pharmaceuticals.
Diversification Opportunities for BGNE Old and Apellis Pharmaceuticals
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BGNE and Apellis is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BGNE Old and Apellis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apellis Pharmaceuticals and BGNE Old 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 BGNE Old are associated (or correlated) with Apellis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apellis Pharmaceuticals has no effect on the direction of BGNE Old i.e., BGNE Old and Apellis Pharmaceuticals go up and down completely randomly.
Pair Corralation between BGNE Old and Apellis Pharmaceuticals
Given the investment horizon of 90 days BGNE Old is expected to generate 0.81 times more return on investment than Apellis Pharmaceuticals. However, BGNE Old is 1.23 times less risky than Apellis Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Apellis Pharmaceuticals is currently generating about -0.08 per unit of risk. 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 |
BGNE Old vs. Apellis Pharmaceuticals
Performance |
| Timeline |
| BGNE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apellis Pharmaceuticals |
BGNE Old and Apellis Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGNE Old and Apellis Pharmaceuticals
The main advantage of trading using opposite BGNE Old and Apellis Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGNE Old position performs unexpectedly, Apellis 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 Apellis Pharmaceuticals will offset losses from the drop in Apellis Pharmaceuticals' long position.| BGNE Old vs. Ascendis Pharma AS | BGNE Old vs. Apellis Pharmaceuticals | BGNE Old vs. Akero Therapeutics | BGNE Old vs. Blueprint Medicines 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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