Correlation Between Elicio Therapeutics and Novartis
Can any of the company-specific risk be diversified away by investing in both Elicio Therapeutics and Novartis 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 Elicio Therapeutics and Novartis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elicio Therapeutics and Novartis AG ADR, you can compare the effects of market volatilities on Elicio Therapeutics and Novartis 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 Elicio Therapeutics with a short position of Novartis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elicio Therapeutics and Novartis.
Diversification Opportunities for Elicio Therapeutics and Novartis
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elicio and Novartis is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Elicio Therapeutics and Novartis AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novartis AG ADR and Elicio 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 Elicio Therapeutics are associated (or correlated) with Novartis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novartis AG ADR has no effect on the direction of Elicio Therapeutics i.e., Elicio Therapeutics and Novartis go up and down completely randomly.
Pair Corralation between Elicio Therapeutics and Novartis
Given the investment horizon of 90 days Elicio Therapeutics is expected to generate 3.71 times more return on investment than Novartis. However, Elicio Therapeutics is 3.71 times more volatile than Novartis AG ADR. It trades about 0.0 of its potential returns per unit of risk. Novartis AG ADR is currently generating about -0.24 per unit of risk. If you would invest 506.00 in Elicio Therapeutics on August 26, 2024 and sell it today you would lose (13.00) from holding Elicio Therapeutics or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elicio Therapeutics vs. Novartis AG ADR
Performance |
| Timeline |
| Elicio Therapeutics |
| Novartis AG ADR |
Elicio Therapeutics and Novartis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elicio Therapeutics and Novartis
The main advantage of trading using opposite Elicio Therapeutics and Novartis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elicio Therapeutics position performs unexpectedly, Novartis 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 Novartis will offset losses from the drop in Novartis' long position.| Elicio Therapeutics vs. Capricor Therapeutics | Elicio Therapeutics vs. Soleno Therapeutics | Elicio Therapeutics vs. Bio Path Holdings | Elicio Therapeutics vs. Moleculin Biotech |
| Novartis vs. AstraZeneca PLC ADR | Novartis vs. GlaxoSmithKline PLC ADR | Novartis vs. Roche Holding Ltd | Novartis vs. Bristol Myers Squibb |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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