Correlation Between Equillium and MiMedx
Can any of the company-specific risk be diversified away by investing in both Equillium and MiMedx 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 Equillium and MiMedx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and MiMedx Group, you can compare the effects of market volatilities on Equillium and MiMedx 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 Equillium with a short position of MiMedx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and MiMedx.
Diversification Opportunities for Equillium and MiMedx
Pay attention - limited upside
The 3 months correlation between Equillium and MiMedx is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and MiMedx Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiMedx Group and Equillium 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 Equillium are associated (or correlated) with MiMedx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiMedx Group has no effect on the direction of Equillium i.e., Equillium and MiMedx go up and down completely randomly.
Pair Corralation between Equillium and MiMedx
Allowing for the 90-day total investment horizon Equillium is expected to generate 2.41 times more return on investment than MiMedx. However, Equillium is 2.41 times more volatile than MiMedx Group. It trades about 0.09 of its potential returns per unit of risk. MiMedx Group is currently generating about 0.02 per unit of risk. If you would invest 60.00 in Equillium on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Equillium or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. MiMedx Group
Performance |
| Timeline |
| Equillium |
| MiMedx Group |
Equillium and MiMedx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and MiMedx
The main advantage of trading using opposite Equillium and MiMedx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, MiMedx 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 MiMedx will offset losses from the drop in MiMedx's long position.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
| MiMedx vs. Monte Rosa Therapeutics | MiMedx vs. Design Therapeutics | MiMedx vs. Werewolf Therapeutics | MiMedx vs. Ikena Oncology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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