Correlation Between BeiGene and Hepion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BeiGene and Hepion 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 BeiGene and Hepion Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and Hepion Pharmaceuticals, you can compare the effects of market volatilities on BeiGene and Hepion 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 BeiGene with a short position of Hepion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Hepion Pharmaceuticals.
Diversification Opportunities for BeiGene and Hepion Pharmaceuticals
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BeiGene and Hepion is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Hepion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hepion Pharmaceuticals and BeiGene 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 BeiGene are associated (or correlated) with Hepion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hepion Pharmaceuticals has no effect on the direction of BeiGene i.e., BeiGene and Hepion Pharmaceuticals go up and down completely randomly.
Pair Corralation between BeiGene and Hepion Pharmaceuticals
Given the investment horizon of 90 days BeiGene is expected to generate 0.46 times more return on investment than Hepion Pharmaceuticals. However, BeiGene is 2.15 times less risky than Hepion Pharmaceuticals. It trades about 0.08 of its potential returns per unit of risk. Hepion Pharmaceuticals is currently generating about -0.06 per unit of risk. If you would invest 15,311 in BeiGene on August 26, 2024 and sell it today you would earn a total of 3,740 from holding BeiGene or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Hepion Pharmaceuticals
Performance |
| Timeline |
| BeiGene |
| Hepion Pharmaceuticals |
BeiGene and Hepion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Hepion Pharmaceuticals
The main advantage of trading using opposite BeiGene and Hepion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Hepion 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 Hepion Pharmaceuticals will offset losses from the drop in Hepion Pharmaceuticals' long position.| BeiGene vs. Eliem Therapeutics | BeiGene vs. HCW Biologics | BeiGene vs. Scpharmaceuticals | BeiGene vs. Milestone Pharmaceuticals |
| Hepion Pharmaceuticals vs. Enveric Biosciences | Hepion Pharmaceuticals vs. Elevation Oncology | Hepion Pharmaceuticals vs. Ocean Biomedical | Hepion Pharmaceuticals vs. Zura Bio Limited |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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