Correlation Between ChitogenX and Ascletis Pharma
Can any of the company-specific risk be diversified away by investing in both ChitogenX and Ascletis Pharma 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 ChitogenX and Ascletis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChitogenX and Ascletis Pharma, you can compare the effects of market volatilities on ChitogenX and Ascletis Pharma 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 ChitogenX with a short position of Ascletis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChitogenX and Ascletis Pharma.
Diversification Opportunities for ChitogenX and Ascletis Pharma
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ChitogenX and Ascletis is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ChitogenX and Ascletis Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascletis Pharma and ChitogenX 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 ChitogenX are associated (or correlated) with Ascletis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascletis Pharma has no effect on the direction of ChitogenX i.e., ChitogenX and Ascletis Pharma go up and down completely randomly.
Pair Corralation between ChitogenX and Ascletis Pharma
Assuming the 90 days horizon ChitogenX is expected to under-perform the Ascletis Pharma. In addition to that, ChitogenX is 3.9 times more volatile than Ascletis Pharma. It trades about -0.06 of its total potential returns per unit of risk. Ascletis Pharma is currently generating about 0.07 per unit of volatility. If you would invest 15.00 in Ascletis Pharma on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Ascletis Pharma or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChitogenX vs. Ascletis Pharma
Performance |
| Timeline |
| ChitogenX |
| Ascletis Pharma |
ChitogenX and Ascletis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChitogenX and Ascletis Pharma
The main advantage of trading using opposite ChitogenX and Ascletis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChitogenX position performs unexpectedly, Ascletis Pharma 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 Ascletis Pharma will offset losses from the drop in Ascletis Pharma's long position.| ChitogenX vs. Advanced Proteome Therapeutics | ChitogenX vs. Cellectis SA | ChitogenX vs. Biotron Limited | ChitogenX vs. biOasis Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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