Correlation Between Evofem Biosciences and Abeona Therapeutics
Can any of the company-specific risk be diversified away by investing in both Evofem Biosciences and Abeona 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 Evofem Biosciences and Abeona Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evofem Biosciences and Abeona Therapeutics, you can compare the effects of market volatilities on Evofem Biosciences and Abeona 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 Evofem Biosciences with a short position of Abeona Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evofem Biosciences and Abeona Therapeutics.
Diversification Opportunities for Evofem Biosciences and Abeona Therapeutics
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evofem and Abeona is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and Abeona Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abeona Therapeutics and Evofem Biosciences 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 Evofem Biosciences are associated (or correlated) with Abeona Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abeona Therapeutics has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and Abeona Therapeutics go up and down completely randomly.
Pair Corralation between Evofem Biosciences and Abeona Therapeutics
If you would invest 452.00 in Abeona Therapeutics on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Abeona Therapeutics or generate 41.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Evofem Biosciences vs. Abeona Therapeutics
Performance |
| Timeline |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Abeona Therapeutics |
Evofem Biosciences and Abeona Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evofem Biosciences and Abeona Therapeutics
The main advantage of trading using opposite Evofem Biosciences and Abeona Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evofem Biosciences position performs unexpectedly, Abeona 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 Abeona Therapeutics will offset losses from the drop in Abeona Therapeutics' long position.| Evofem Biosciences vs. Gentex | Evofem Biosciences vs. Magna International | Evofem Biosciences vs. PACCAR Inc | Evofem Biosciences vs. Aeye Inc |
| Abeona Therapeutics vs. Tff Pharmaceuticals | Abeona Therapeutics vs. Eliem Therapeutics | Abeona Therapeutics vs. Inhibrx | Abeona Therapeutics vs. Enliven 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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