Correlation Between Geron and NRX Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Geron and NRX 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 Geron and NRX Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and NRX Pharmaceuticals, you can compare the effects of market volatilities on Geron and NRX 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 Geron with a short position of NRX Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and NRX Pharmaceuticals.
Diversification Opportunities for Geron and NRX Pharmaceuticals
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geron and NRX is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Geron and NRX Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRX Pharmaceuticals and Geron 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 Geron are associated (or correlated) with NRX Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRX Pharmaceuticals has no effect on the direction of Geron i.e., Geron and NRX Pharmaceuticals go up and down completely randomly.
Pair Corralation between Geron and NRX Pharmaceuticals
Given the investment horizon of 90 days Geron is expected to under-perform the NRX Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Geron is 5.17 times less risky than NRX Pharmaceuticals. The stock trades about -0.22 of its potential returns per unit of risk. The NRX Pharmaceuticals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 139.00 in NRX Pharmaceuticals on November 1, 2024 and sell it today you would earn a total of 160.00 from holding NRX Pharmaceuticals or generate 115.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. NRX Pharmaceuticals
Performance |
| Timeline |
| Geron |
| NRX Pharmaceuticals |
Geron and NRX Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and NRX Pharmaceuticals
The main advantage of trading using opposite Geron and NRX Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, NRX 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 NRX Pharmaceuticals will offset losses from the drop in NRX Pharmaceuticals' long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| NRX Pharmaceuticals vs. Biomx Inc | NRX Pharmaceuticals vs. Lexaria Bioscience Corp | NRX Pharmaceuticals vs. Aditxt Inc | NRX Pharmaceuticals vs. Nutriband |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |