Correlation Between Connect Biopharma and Apexigen
Can any of the company-specific risk be diversified away by investing in both Connect Biopharma and Apexigen 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 Connect Biopharma and Apexigen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Connect Biopharma Holdings and Apexigen, you can compare the effects of market volatilities on Connect Biopharma and Apexigen 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 Connect Biopharma with a short position of Apexigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Connect Biopharma and Apexigen.
Diversification Opportunities for Connect Biopharma and Apexigen
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Connect and Apexigen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Connect Biopharma Holdings and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen and Connect Biopharma 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 Connect Biopharma Holdings are associated (or correlated) with Apexigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexigen has no effect on the direction of Connect Biopharma i.e., Connect Biopharma and Apexigen go up and down completely randomly.
Pair Corralation between Connect Biopharma and Apexigen
If you would invest 43.00 in Apexigen on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Apexigen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Connect Biopharma Holdings vs. Apexigen
Performance |
| Timeline |
| Connect Biopharma |
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Connect Biopharma and Apexigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Connect Biopharma and Apexigen
The main advantage of trading using opposite Connect Biopharma and Apexigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Connect Biopharma position performs unexpectedly, Apexigen 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 Apexigen will offset losses from the drop in Apexigen's long position.| Connect Biopharma vs. Assembly Biosciences | Connect Biopharma vs. Instil Bio | Connect Biopharma vs. CytomX Therapeutics | Connect Biopharma vs. Achilles Therapeutics PLC |
| Apexigen vs. Leap Therapeutics | Apexigen vs. Zura Bio Limited | Apexigen vs. X4 Pharmaceuticals | Apexigen vs. Phio Pharmaceuticals Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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