Correlation Between Evofem Biosciences and Abeona Therapeutics

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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

EvofemAbeonaDiversified AwayEvofemAbeonaDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Evofem and Abeona is 0.0. 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  736.00  in Abeona Therapeutics on November 21, 2024 and sell it today you would lose (134.00) from holding Abeona Therapeutics or give up 18.21% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Evofem Biosciences  vs.  Abeona Therapeutics

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-50
JavaScript chart by amCharts 3.21.15EVFMD ABEO
       Timeline  
Evofem Biosciences 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Evofem Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Evofem Biosciences is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Abeona Therapeutics 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Abeona Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Abeona Therapeutics may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5.25.45.65.866.26.46.6

Evofem Biosciences and Abeona Therapeutics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15EVFMD ABEO
       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.
The idea behind Evofem Biosciences and Abeona 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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