Correlation Between ELYM Old and Aerovate Therapeutics
Can any of the company-specific risk be diversified away by investing in both ELYM Old and Aerovate Therapeutics 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 ELYM Old and Aerovate Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELYM Old and Aerovate Therapeutics, you can compare the effects of market volatilities on ELYM Old and Aerovate Therapeutics 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 ELYM Old with a short position of Aerovate Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELYM Old and Aerovate Therapeutics.
Diversification Opportunities for ELYM Old and Aerovate Therapeutics
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ELYM and Aerovate is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ELYM Old and Aerovate Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerovate Therapeutics and ELYM Old 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 ELYM Old are associated (or correlated) with Aerovate Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerovate Therapeutics has no effect on the direction of ELYM Old i.e., ELYM Old and Aerovate Therapeutics go up and down completely randomly.
Pair Corralation between ELYM Old and Aerovate Therapeutics
Given the investment horizon of 90 days ELYM Old is expected to generate 1.07 times more return on investment than Aerovate Therapeutics. However, ELYM Old is 1.07 times more volatile than Aerovate Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Aerovate Therapeutics is currently generating about 0.0 per unit of risk. If you would invest 362.00 in ELYM Old on October 16, 2024 and sell it today you would lose (53.00) from holding ELYM Old or give up 14.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.14% |
| Values | Daily Returns |
ELYM Old vs. Aerovate Therapeutics
Performance |
| Timeline |
| ELYM Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aerovate Therapeutics |
ELYM Old and Aerovate Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELYM Old and Aerovate Therapeutics
The main advantage of trading using opposite ELYM Old and Aerovate Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELYM Old position performs unexpectedly, Aerovate Therapeutics 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 Aerovate Therapeutics will offset losses from the drop in Aerovate Therapeutics' long position.The idea behind ELYM Old and Aerovate Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aerovate Therapeutics vs. Adagene | Aerovate Therapeutics vs. Acrivon Therapeutics, Common | Aerovate Therapeutics vs. Rezolute | Aerovate Therapeutics vs. AN2 Therapeutics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |