Correlation Between Egetis Therapeutics and Annexin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Egetis Therapeutics and Annexin 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 Egetis Therapeutics and Annexin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egetis Therapeutics AB and Annexin Pharmaceuticals AB, you can compare the effects of market volatilities on Egetis Therapeutics and Annexin 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 Egetis Therapeutics with a short position of Annexin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egetis Therapeutics and Annexin Pharmaceuticals.
Diversification Opportunities for Egetis Therapeutics and Annexin Pharmaceuticals
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Egetis and Annexin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Egetis Therapeutics AB and Annexin Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexin Pharmaceuticals and Egetis Therapeutics 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 Egetis Therapeutics AB are associated (or correlated) with Annexin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexin Pharmaceuticals has no effect on the direction of Egetis Therapeutics i.e., Egetis Therapeutics and Annexin Pharmaceuticals go up and down completely randomly.
Pair Corralation between Egetis Therapeutics and Annexin Pharmaceuticals
Assuming the 90 days trading horizon Egetis Therapeutics AB is expected to generate 0.91 times more return on investment than Annexin Pharmaceuticals. However, Egetis Therapeutics AB is 1.09 times less risky than Annexin Pharmaceuticals. It trades about 0.36 of its potential returns per unit of risk. Annexin Pharmaceuticals AB is currently generating about 0.02 per unit of risk. If you would invest 417.00 in Egetis Therapeutics AB on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Egetis Therapeutics AB or generate 34.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egetis Therapeutics AB vs. Annexin Pharmaceuticals AB
Performance |
| Timeline |
| Egetis Therapeutics |
| Annexin Pharmaceuticals |
Egetis Therapeutics and Annexin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egetis Therapeutics and Annexin Pharmaceuticals
The main advantage of trading using opposite Egetis Therapeutics and Annexin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egetis Therapeutics position performs unexpectedly, Annexin 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 Annexin Pharmaceuticals will offset losses from the drop in Annexin Pharmaceuticals' long position.| Egetis Therapeutics vs. Simris Alg AB | Egetis Therapeutics vs. Immunovia publ AB | Egetis Therapeutics vs. Sedana Medical AB | Egetis Therapeutics vs. KABE Group AB |
| Annexin Pharmaceuticals vs. Cantargia AB | Annexin Pharmaceuticals vs. Biovica International AB | Annexin Pharmaceuticals vs. Ascelia Pharma AB | Annexin Pharmaceuticals vs. Cyxone AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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