Correlation Between Lexicon Pharmaceuticals and AVROBIO
Can any of the company-specific risk be diversified away by investing in both Lexicon Pharmaceuticals and AVROBIO 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 Lexicon Pharmaceuticals and AVROBIO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexicon Pharmaceuticals and AVROBIO, you can compare the effects of market volatilities on Lexicon Pharmaceuticals and AVROBIO 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 Lexicon Pharmaceuticals with a short position of AVROBIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexicon Pharmaceuticals and AVROBIO.
Diversification Opportunities for Lexicon Pharmaceuticals and AVROBIO
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lexicon and AVROBIO is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lexicon Pharmaceuticals and AVROBIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVROBIO and Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals are associated (or correlated) with AVROBIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVROBIO has no effect on the direction of Lexicon Pharmaceuticals i.e., Lexicon Pharmaceuticals and AVROBIO go up and down completely randomly.
Pair Corralation between Lexicon Pharmaceuticals and AVROBIO
If you would invest 140.00 in AVROBIO on August 31, 2024 and sell it today you would earn a total of 0.00 from holding AVROBIO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lexicon Pharmaceuticals vs. AVROBIO
Performance |
| Timeline |
| Lexicon Pharmaceuticals |
| AVROBIO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lexicon Pharmaceuticals and AVROBIO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexicon Pharmaceuticals and AVROBIO
The main advantage of trading using opposite Lexicon Pharmaceuticals and AVROBIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexicon Pharmaceuticals position performs unexpectedly, AVROBIO 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 AVROBIO will offset losses from the drop in AVROBIO's long position.| Lexicon Pharmaceuticals vs. BioLineRx | Lexicon Pharmaceuticals vs. Ardelyx | Lexicon Pharmaceuticals vs. Seres Therapeutics | Lexicon Pharmaceuticals vs. Immunitybio |
| AVROBIO vs. Ocean Biomedical | AVROBIO vs. Enveric Biosciences | AVROBIO vs. Elevation Oncology | AVROBIO vs. Zura Bio Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |