Correlation Between Medigene and ChitogenX
Can any of the company-specific risk be diversified away by investing in both Medigene and ChitogenX 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 Medigene and ChitogenX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medigene AG and ChitogenX, you can compare the effects of market volatilities on Medigene and ChitogenX 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 Medigene with a short position of ChitogenX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medigene and ChitogenX.
Diversification Opportunities for Medigene and ChitogenX
Weak diversification
The 3 months correlation between Medigene and ChitogenX is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Medigene AG and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX and Medigene 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 Medigene AG are associated (or correlated) with ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Medigene i.e., Medigene and ChitogenX go up and down completely randomly.
Pair Corralation between Medigene and ChitogenX
If you would invest 259.00 in Medigene AG on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Medigene AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Medigene AG vs. ChitogenX
Performance |
| Timeline |
| Medigene AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ChitogenX |
Medigene and ChitogenX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medigene and ChitogenX
The main advantage of trading using opposite Medigene and ChitogenX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medigene position performs unexpectedly, ChitogenX 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 ChitogenX will offset losses from the drop in ChitogenX's long position.| Medigene vs. Northwest Biotherapeutics | Medigene vs. Geron | Medigene vs. Advanced Proteome Therapeutics | Medigene vs. Oxford BioDynamics Plc |
| ChitogenX vs. Sino Biopharmaceutical Ltd | ChitogenX vs. Defence Therapeutics | ChitogenX vs. Aileron Therapeutics | ChitogenX vs. Enlivex 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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