Correlation Between ExpreS2ion Biotech and Annexin Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both ExpreS2ion Biotech and Annexin Pharmaceuticals 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 ExpreS2ion Biotech and Annexin Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExpreS2ion Biotech Holding and Annexin Pharmaceuticals AB, you can compare the effects of market volatilities on ExpreS2ion Biotech and Annexin Pharmaceuticals 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 ExpreS2ion Biotech with a short position of Annexin Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExpreS2ion Biotech and Annexin Pharmaceuticals.
Diversification Opportunities for ExpreS2ion Biotech and Annexin Pharmaceuticals
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ExpreS2ion and Annexin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ExpreS2ion Biotech Holding and Annexin Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexin Pharmaceuticals and ExpreS2ion Biotech 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 ExpreS2ion Biotech Holding are associated (or correlated) with Annexin Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexin Pharmaceuticals has no effect on the direction of ExpreS2ion Biotech i.e., ExpreS2ion Biotech and Annexin Pharmaceuticals go up and down completely randomly.
Pair Corralation between ExpreS2ion Biotech and Annexin Pharmaceuticals
Assuming the 90 days trading horizon ExpreS2ion Biotech Holding is expected to under-perform the Annexin Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, ExpreS2ion Biotech Holding is 1.12 times less risky than Annexin Pharmaceuticals. The stock trades about -0.27 of its potential returns per unit of risk. The Annexin Pharmaceuticals AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Annexin Pharmaceuticals AB on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Annexin Pharmaceuticals AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExpreS2ion Biotech Holding vs. Annexin Pharmaceuticals AB
Performance |
| Timeline |
| ExpreS2ion Biotech |
| Annexin Pharmaceuticals |
ExpreS2ion Biotech and Annexin Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExpreS2ion Biotech and Annexin Pharmaceuticals
The main advantage of trading using opposite ExpreS2ion Biotech and Annexin Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExpreS2ion Biotech position performs unexpectedly, Annexin Pharmaceuticals 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 Annexin Pharmaceuticals will offset losses from the drop in Annexin Pharmaceuticals' long position.| ExpreS2ion Biotech vs. Bavarian Nordic | ExpreS2ion Biotech vs. BioPorto | ExpreS2ion Biotech vs. Zaptec AS | ExpreS2ion Biotech vs. cBrain AS |
| Annexin Pharmaceuticals vs. Cantargia AB | Annexin Pharmaceuticals vs. Biovica International AB | Annexin Pharmaceuticals vs. Ascelia Pharma AB | Annexin Pharmaceuticals vs. Cyxone AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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